stock rights

Meaning

1. 1nounusually plural

   Short-term privileges given to current shareholders to buy new shares of the company at a set price before the public can.

   Grammar: Usually plural: shareholders receive stock rights.

   Patterns

   • stock rights to buy something
   • stock rights issue

   Existing shareholders received stock rights to buy new shares at a discount.

   She sold her stock rights instead of buying more shares.

   The company announced stock rights to raise money for a new factory.

Common combinations

exercise stock rights

Investors have until Friday to exercise their stock rights.

issue stock rights

The firm decided to issue stock rights rather than borrow.

sell stock rights

He sold the stock rights for a small profit.

expiry of stock rights

The expiry of stock rights is set for next month.

trading in stock rights

Trading in stock rights begins tomorrow morning.

Synonyms and how they differ

subscription rights

Subscription rights is a very close term and often used interchangeably, but stock rights is the shorter, more general phrase.

rights issue

A rights issue is the whole offering, while stock rights are the privileges received in it.

pre-emptive rights

Pre-emptive rights are legal protections of shareholders, whereas stock rights are the actual transferable offers.

Word family

stock noun

shares in a company

right noun

a legal entitlement

shareholder noun

a person who owns shares

stock option noun

a right to buy stock later at a set price

Commonly confused: stock rights or stock options? stock rights or warrants?

Practice

Make it your own

Write a sentence using “stock rights”, then check it and compare it with the examples above.

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