Rights Offering
Content
Definition
A Rights Offering is a way for companies to raise capital by giving existing shareholders the right to purchase additional shares at a discount, before offering them to the public.
Usage and Context
A rights offering allows current shareholders to buy more shares at a discount to help raise money.
Frequently asked questions
- What is a company rights offering? A rights offering allows existing shareholders to buy more shares at a discounted rate to help the company raise capital.
- What is the difference between a rights offering and a public offering? A rights offering allows existing shareholders to purchase additional shares before they are offered to the public, while a public offering sells shares directly to the general public.
- What is a subscription rights offering? A subscription rights offering allows shareholders to buy additional shares, often at a reduced price.
Benefits
A rights offering lets existing shareholders buy additional shares at a discount to raise capital.
Conclusion
A rights offering allows current shareholders to purchase additional shares at a discount to raise funds.
