# Rights Offering Practice

**IRI:** https://folio.openlegalstandard.org/RrZ8GeZZWg1PSJ3c7SqMwn

## Labels

**Preferred Label:** Rights Issue

## Definition

Rights Offering Practice is a method of equity financing in which a company offers its existing shareholders the right to purchase additional shares of stock, typically at a discounted price, before the shares are offered to the general public. This practice allows companies to raise capital while giving current shareholders the opportunity to maintain their proportional ownership.

## Sub Class Of

- https://folio.openlegalstandard.org/R5mVKmojg3FKSzxupI6FLy

**Deprecated:** False