A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Nil Paid Rights
When a rights issue is announced, existing shareholders have the right but not the obligation to participate. Rights issues are typically offered at a discount to the prevailing market price so allotment letters have a market value and may be traded 'nil paid rights' before payment for the new shares is due. Investors who decide to take up a rights issue cannot sell their nil paid rights.