what is a rights offering issue 
a rights offering rights issue is a group of rights offered to existing shareholders to purchase additional stock shares known as subscription warrants in proportion to their existing holdings these are considered to be a type of option since they give a company s stockholders the right but not the obligation to purchase additional shares in the company in a rights offering the subscription price at which each share may be purchased is generally discounted relative to the current market price before the shareholder has paid for the new shares they are known as nil paid shares once they pay for the shares they are referred to as fully paid rights rights are often transferable allowing the holder to sell them in the open market 