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Glite Dictionary
rights issue

rights issue

1 6.3
An offer of extra shares to existing shareholders at a lower price
  • noun
  • Specialized
translation icon : emisión de derechos

Synonyms

rights offering
vsrights issue
  • Specialized
1 6.8

An offer for people who already own a company's shares to buy more at a lower price before others

has identical meaning but uses the other common name

Surface Forms

rights issue singular
rights issues plural

Morphology

right + issue

The parts 'rights' (entitlements) and 'issue' (an act of issuing) give a learner a general sense that something is being issued related to entitlements, but they would not be able to infer the specific financial practice—offering new shares to existing shareholders at a discount—without domain knowledge. Because the compound is a technical finance term that provides partial compositional clues but requires specialised knowledge for the full meaning, it is best categorized as semi-transparent.

Etymology

The noun rights issue comes from companies issuing special rights — like a ticket — to existing shareholders so they can 'buy' new shares at a discount before others. So, it means an 'offer' of extra shares to current owners.