A Rights Issue is a way that listed Companies can use their existing shareholders to raise money.

The way the company does this is to invite these shareholders to buy additional shares in the company, often at a discounted price, to encourage them to do so.

If the shareholders accept the invitation to buy additional shares, we say that they take up their rights or exercise their rights. 

To understand how Rights offers work - please visit our FAQ article How does a Right Issue or Rights Offer work?