Share Purchase Rights


Share Purchase Rights
A type of security that gives the holder the option, but not the obligation, to purchase a predetermined number of shares at a predetermined price. This is similar to a stock option or warrant. These rights are typically distributed to existing shareholders, who have the ability to trade these rights on an exchange.

The rights only give shareholders the ability to purchase the shares, but they must still must pay for the shares to redeem the rights.


Investment dictionary. . 2012.

Look at other dictionaries:

  • share appreciation rights — (SAR) An arrangement similar to share options but where holders are entitled to receive the intrinsic value only, typically paid in cash, rather than being given the right to purchase shares at the exercise price. Practical Law Dictionary.… …   Law dictionary

  • 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… …   Investment dictionary

  • Share repurchase — In some countries, including the United States and the United Kingdom, corporations can buy back their own stock in a share repurchase, also known as a stock repurchase or share buyback. There has been a meteoric rise in the use of share… …   Wikipedia

  • RIGHTS, HUMAN — The following article deals with the subject of human rights, their essence and the contents of various fundamental rights as reflected in the sources of Jewish Law. The interpretation of Israel s Basic Laws concerning human rights in accordance… …   Encyclopedia of Judaism

  • Rights issue — When doing a Secondary Market Offering of shares to raise money, a company can opt for doing a rights issue to raise capital. With the issued rights, existing shareholders have the privilege to buy a specified number of new shares from the firm… …   Wikipedia

  • rights issue — An issue of shares for cash by a company to its existing shareholders on a basis pro rata to their existing shareholdings. The issue will normally be at a substantial discount to the current share price (usually between 20% and 40% discount). The …   Financial and business terms

  • Purchase of T-Mobile USA by AT&T — The merger of AT T and T Mobile USA was announced on March 20, 2011. On August 31, 2011, the Antitrust Division of the United States Department of Justice formally announced that it would seek to block the takeover, and filed a lawsuit to such… …   Wikipedia

  • Share Class — A designation applied to a specified type of security such as common stock or mutual fund units. Companies that have more than one class of common stock usually identify a given class with alphabetic markers, such as Class A shares and Class B… …   Investment dictionary

  • Digital rights management — (DRM) is a term for access control technologies that are used by hardware manufacturers, publishers, copyright holders and individuals to limit the use of digital content and devices. The term is used to describe any technology that inhibits uses …   Wikipedia

  • Diluted Earnings Per Share — (diluted EPS) is a company s earnings per share (EPS) calculated using fully diluted shares outstanding (i.e. including the impact of stock option grants and convertible bonds). Diluted EPS indicates a worst case scenario, one in which everyone… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.