Rights are securities granting rights to subscription to a certain number of shares in connection with a decision taken for increasing the capital of a public company. These are term derivatives, whose yield depends on the expected yield for the class of shares they refer to. They are traded at the Bulgarian Stock Exchange, they are book-entry securities like the shares they refer to. They are regulated under the Public Offering of Securities Act.
It should be noted there is an additional risk in investing in rights, viz. of full loss of the invested value for the short term of existence of the rights – if exercising the rights proves to be inexpedient due to a downward trend in the price of shares under the subscription price stated in the rights.