"rights"

G

Gordon Gekko

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
 
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.
 
You must log in or register to reply here.
Back
Top