what are non renounceable rights 
a non renounceable rights issue refers to an offer issued by a corporation to shareholders to purchase more shares of the corporation usually at a discount unlike a renounceable right a non renounceable right is not transferable and therefore cannot be bought or sold understanding non renounceable rightsissuing more shares dilutes the value of outstanding stock but because the rights issue allows existing shareholders to buy the newly issued stock at a discount they are compensated for the impending share dilution the compensation the rights issue gives them is equivalent to the cost of share dilution however shareholders who do not take exercise the rights by buying the discounted stock will lose money as their existing holdings will suffer from the dilution a renounceable right is also an invitation to a company s existing shareholders to buy additional new shares in the company if the shareholders are not required to immediately pay for the new shares it is called nil paid shares while shareholders have the authority to buy more shares they can renounce that privilege and trade their rights on the open market 