Share Purchase Right
What it is:
A share purchase right is an instrument that entitles the holder to purchase a specified number of shares at a specified price.
How it works (Example):
Offered by an issuing company, a share purchase right gives current shareholders the opportunity to purchase a specific quantity of shares at a favorable discount without obligation. For instance, a share purchase right might offer a current holder 10 additional shares for $500 ($50 per share) rather than the current market price of $70 per share.