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Lee T
Lv 4
Lee T asked in Business & FinanceInvesting · 1 decade ago

what is a "rights spin off" in stock??

I was looking at my stocks today and on my brokers site under my recent transactions it said my stock symbol and this thing called a 1:1 rights spin off. What exactly does this mean? Thanks for your answers!

2 Answers

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  • 1 decade ago
    Favorite Answer

    It gives you the first right to buy stock in any new offering, before others, so your shares arent diluted in a new offering. One share for each share you already own.

  • Anonymous
    1 decade ago

    That sounds like there might have been a stock split, or some sort of merger or acquisition in the company you own shares of. You have the right to purchase more stock from them at a different price than normal. You should look into what the right is, if its 1:1 then it probably isn't a split, because that would say 2:1 or something else, so there may be a different class of stock being offered, that would give you more power at the shareholders meetings (if you even bother to attend those)

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