Of Rights, Warrants and Your Bedokian Portfolio

If you belong to the active camp of investors of The Bedokian Portfolio, chances are you might see the terms “rights” and “warrants” in your individual equities and REITs counters. For this post, I will share what are rights and warrants, how these would affect your Bedokian Portfolio and what to do about them.


Rights are entitlements to existing shareholders for the purchase of additional shares of a company/REIT at a typically discounted price. When a company or REIT announces a rights issue, it will include a few numbers that determine how many additional shares are entitled per number of existing shares. For example, a company announces that there will be a rights issue of 250 shares for every 1,000 shares owned, priced at $1.00. This means if a shareholder has 1,000 shares, he/she will be entitled 250 additional shares of the company, priced at $1.00 each …

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