rights offering
1
6.8
- noun
- /raɪts ˈɔfərɪŋ/
- Specialized
:
oferta de derechos
- After the rights offering was completed, many investors took advantage of the opportunity to increase their stake in the company.
Examples
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With the completion of the rights offering during the first week of December, we expect to be well positioned going into 2013 to execute our acceleration and development program.
Blog text (4) -
The company announced a rights offering to allow shareholders to purchase additional shares at a discounted rate.
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During the rights offering, existing shareholders were given priority to buy new shares before they were available to the public.
Synonyms
1
6.3
An offer of extra shares to existing shareholders at a lower price
Surface Forms
Morphology
The word 'offering' clearly indicates something being offered and 'rights' suggests entitlements, so a learner might infer it is an offer of some entitlement. However, the specific financial sense — an offer to existing shareholders to buy additional shares (usually at a discount) — is specialized, domain-specific usage that a B1 learner who only knows the literal nouns would not reliably predict.
Etymology
The phrase rights offering comes from the two parts rights meaning 'permission' and offering meaning 'an offer', and it shows a company giving current owners the first chance to buy more shares. So rights offering means an offer for 'existing shareholders' to buy extra shares, often at a lower price, so the company can raise money.