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Rights definition explanation



What is Rights?
A security giving stockholders entitlement to purchase new shares issued by the corporation at a predetermined price (normally less than the current market price) in proportion to the number of shares already owned. Rights are issued only for a short period of time, after which they expire. Read more for examples and further explanation including related video clips and also comments

Example explains Rights
This also known as “”subscription rights”" or “”share purchase rights”".

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