A securities offering that provides an issuer's existing stockholders the opportunity to buy a pro rata portion of additional shares of stock. These additional shares are offered at a specific price per share (the subscription price), which is typically set at a discount to the recent trading price of the issuer's stock. A rights offering provides a capital raising opportunity which is not dilutive to existing stockholders. The rights are often transferable, allowing the holder to sell them on the open market.

For more information on conducting rights offerings, see Article, Rights Offerings: Why, How and When and Rights Offering Checklist.