Rights Issue is an offering of common stock to existing shareholders who hold subscription rights or pre-emptive rights that entitle them to buy newly issued shares at a discount from the market price at which they will be available to the public later.

A rights issue is a way for a quoted company to raise money. Rather than take on debt, a quoted company can instead ask its shareholders to dig into their pockets to provide extra capital.

The price of the newly issued shares is fixed, always set below the market price. Just as its name implies, this problem to shareholders shall have the right to purchase additional shares, but not the obligation. The right to sell to those who wish to use this proposal, at so every correct value. All or part of the shareholders may buy at their all right.