Liquidation rights

The rights of a firm's securityholders in the event the firm liquidates.

Similar financial terms

Liquidation value
Net amount that could be realized by selling the assets of a firm after paying the debt.

Liquidation
When a firm's business is terminated, assets are sold, proceeds pay creditors and any leftovers are distributed to shareholders. Any transaction that offsets or closes out a Long or short position.

Liquidation Preference
Sometimes, usually by virtue of an agreement, certain shareholders will receive preferential treatment if a company is liquidated. Investors may insist on this so that if a company fails, they are paid out first before any other shareholders receive any payouts.

Position liquidation
The closing out of a long position. The term is sometimes used to denote closing out a short position, but this is more often referred to as covering.

Rights issue
An new share issue to existing shareholders giving them the right to buy new shares at a predetermined price.

Issuance of "rights" to current shareholders allowing them to purchase additional shares,usually at a discount to market price. Shareholders who do not exercise these rights are usually diluted by the offering. Rights are often transferable, allowing the holder to sell them on the open market to others who may wish to exercise them. Rights offerings are particularly common to c ...

With rights
Purchase of shares in which the buyer is entitled to the rights to buy shares in the company's rights issue.

Voting rights
The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors.

Special drawing rights (SDR)
A form of international reserve assets, created by the IMF in 1967, whose value is based on a portfolio of widely used currencies.

Rights-on
Shares trading with rights attached to them.

Property rights
Rights of individuals and companies to own and utilize property as they see fit and to receive the stream of income that their property generates.

Cum rights
With rights.

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Uptick

When the most recent movement in the price of a stock was an increase.


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