"rights"

Discussion in 'Trading' started by Gordon Gekko, Nov 5, 2001.

  1. i have ACAM in a quotes list using esignal. when i entered the symbol, a red "R" was added to the end of it. i looked up with this meant in esignal and it defined it as "rights." what does this mean? should this matter to me as a trader?
    thanks
     
  2. derivatives on stock. when issued security - trades before the
    security is issued. you get the idea ?
    In other words - you buy a 100 rights on issue XYZ - XYZ.r
    pay option like prices $5 per share when XYZ will sell $30.
    The fundementals on the business (even so itself the shares
    are not on the market) so the rights trade as a proxy. When
    you hold them to certain date you will be converted to actual
    shares by coughing up more $$$. Like I said very option like
    except the boyz in the CBOE can screw you quite as bad.