Definitions
In plain terms
The right can have value when the subscription price is below the comparable market price, and the holder may exercise, sell, or let it expire depending on terms.
Technical
The event contract includes entitlement ratio, subscription price and currency, renounceability, key dates, destination security, fractional treatment, dividend disadvantage, and source.
Scope
Open offers, warrants, and rights issues can have different transfer and eligibility rules.
Examples
- A governed calculation records rights issue with its exact basis, effective time, source, and units.
Common misconceptions
- Rights Issue does not have one universal treatment without the applicable methodology, event terms, and data context.
Concept relationships
Broader concepts
Required by
Where this concept is used
Evidence and governance
- S&P DJI Equity Indices Policies & Practices S&P Dow Jones Indices · first party methodology
Supports: preferred label, short definition, technical definition
Limits: Provider-specific rules and discretion must be read with the methodology effective for the named index and date.
- Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract
Supports: variant distinction
Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.
- Reviewed by
- fintech-builder-owner-approved
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- published