Definition: [crh] Issuance to shareholders that allows them to purchase additional shares, usually at a discount to market price. Holdings of shareholders who do not exercise rights are usually diluted by the Definition: EF="/?rd=offering">offering. Rights are often transferable, allowing the holder to sell them on the open Definition: "/?rd=market">market to others who may wish to exercise them. Rights offerings are particularly common to closed-end funds, which cannot otherwise issue additional common stock.
Definition: [crh] A popular means of raising capital by offering shareholders the opportunity to buy additional shares of the same stock at a price below the current market value.
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