Rights

Question 1

Sometimes companies decide to raise money by carrying out a _______, also called a rights issue, in which the company sells new shares to current shareholders only

Answer 1

rights offering

Question 2

The rights sold in a rights offering may be referred to as _______, or simply, rights

Answer 2

subscription rights

Question 3

Typically, during a rights offering, each shareholder is given a certain number of rights for a certain number of shares owned. In order to entice shareholders to purchase the new shares, the shares will usually be offered at a discount price called the

Answer 3

subscription price