Stock Rights

Stock Rights Definition (in the Accounting Vocabulary)

The New York State Society of Certified Public Accountants offers the following definition of Stock Rights in a way that is easy for anybody to understand: Stock rights are rights issued to stockholders of a CORPORATION that entitle them to purchase new shares of stock in the corporation for a stated price that is often substantially less than the FAIR MARKET VALUE of the stock. These rights may be exercised by paying the stated price, may be sold, or may be allowed to expire or lapse. Stock rights are generally treated as stock DIVIDENDS.