1.1.9 Rights and Warrants
This topic describes the rights and warrants of the share holders.
From time to time a company may need to raise additional capital by issuing common stock. It may do so either through the usual underwriting methods or through the issuance of rights or warrants to current stockholders. Rights and warrants are similar in that both permit their holders to subscribe to the new shares. They differ in that rights are generally short term whereas warrants have much longer lives. Also, a corporation may have several warrant issues outstanding at one time, but it may offer only one rights issue at a time.
Parent topic: Financial market