TeachMeFinance.com - explain Right
Right -- As a financial term the word means the right or
privilege to subscribe for a stock or bond.
When a company proposes to increase its capital stock it
is the custom for it to give its stockholders the right, in preference
to the general public, to subscribe for the new stock in
amounts proportionate to their holdings of the old stock.
An allotment or accepted subscription in an underwriting is
About the author
Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.