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LSDefine

Simple English definitions for legal terms

rights offering

Read a random definition: Watkins v. United States (1957)

A quick definition of rights offering:

A rights offering is when a company gives its current shareholders the chance to buy more shares of stock at a fixed price. This price is usually lower than what the stock is currently worth. Shareholders can buy more shares in proportion to the number of shares they already own. This is called a privileged subscription. It's like a special sale just for the people who already own part of the company.

A more thorough explanation:

A rights offering is a type of securities offering where a company issues stock-purchase rights to its existing shareholders. These rights allow shareholders to buy newly issued stock at a fixed price, usually below market value, and in proportion to the number of shares they already own.

For example, if a company has 100,000 shares outstanding and decides to issue 10,000 new shares through a rights offering, each shareholder would receive one right for every ten shares they own. If a shareholder owns 100 shares, they would receive 10 rights, which would allow them to purchase 10 new shares at the fixed price.

The purpose of a rights offering is to give existing shareholders the opportunity to maintain their proportional ownership in the company and to raise capital without diluting their ownership. It is also a way for companies to reward their loyal shareholders by offering them the chance to purchase new shares at a discounted price.

rights off | rights on

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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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