Rights entitlement
Market basicsAlso called: RE
A tradeable right to subscribe to a rights issue, credited to your demat account.
In plain terms
It has real value. Letting it lapse dilutes you and pays you nothing.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
A tradeable right to subscribe to a rights issue, credited to your demat account.
It has real value. Letting it lapse dilutes you and pays you nothing.
Selling your rights entitlement to another investor instead of subscribing.
The correct move if you do not want to invest more but do not want to be diluted for free.