July 4, 2022

Volume XII, Number 185

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July 01, 2022

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NYSE Seeks to Facilitate Listing and Trading of Rights

The NYSE proposed a rule change on January 27 that would allow for the listing and trading of rights on the NYSE.  The term "rights" refers to rights offered to holders of record of issued equity securities to subscribe (usually on a pro rata basis) for additional securities of the same class.  To be listed on the NYSE, (i) rights must be issued to purchase or receive a security that is already listed on the NYSE or that will be listed concurrently with the rights, (ii) at least 400,000 rights must be issued and (iii) there must be at least 100 public holders of round lots.  Rights holders may not be entitled to any privileges of the holders of common stock (e.g., dividends, preemptive rights, or voting rights), and, if the rights are exercisable into listed common stock, the listing of the rights and the underlying common stock would be subject to the NYSE’s shareholder approval policy.  The implementation of the rule change would put the NYSE on equal footing with Nasdaq (which already allows for the listing and trading of rights).

Copyright ©2022 Nelson Mullins Riley & Scarborough LLPNational Law Review, Volume XII, Number 32
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About this Author

Erin Reeves McGinnis Securities Lawyer Nelson Mullins
Partner

Erin focuses her practice on securities transactions, including public and private offerings of securities, 1933 Act filings, 1934 Act reporting, corporate governance, SEC compliance, FINRA compliance, and general corporate matters, with a specific emphasis on real estate investment trusts (REITs). She also has significant experience with “Blue Sky” regulatory matters, as well as working with boards of directors and committees thereof, including agenda-setting. Additionally, she counsels clients seeking to create and raise capital through Qualified Opportunity Funds per the recently...

404-322-6208
Wes Scott Corporate Attorney Nelson Mullins Nashville Law Firm
Partner

Wes serves as primary outside counsel to public and private companies with respect to their securities offerings, SEC and FDIC reporting requirements, stock exchange listing compliance, M&A, and corporate governance and general corporate matters.  In particular, Wes focuses his practice on the financial institutions industry, including banks, bank holding companies, investment banks and other depositary institutions, the healthcare industry, including medical device, life sciences, clinical trial and healthcare IT companies, and the REIT industry, including public and private REITs,...

615-664-5304
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