GREY:PGDIF - Post by User
Comment by
mill44on Aug 31, 2017 6:02pm
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Post# 26644608
RE:How do rights work?
RE:How do rights work?When a company decides to raise money, it usually does it by selling shares in some form. Rights offering is one of them, and it's exactly how it sounds, shareholders are offered the right to buy extra shares in the company. Most of, if not all the time, the shares are sold at a discount to make them more attractive to the shareholders. Each share you hold will get you the right to buy one or portion of a share. You use them or not, it's up to you. If the company is good enough, the rights will have value, so you can sell them if you decide not to participate. If you don't use them or sell them, they become worthless at a certain date.