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Morningstar, Inc. Commentaries

Rights Offerings: Have Your Cake and Eat It, Too

Apr 25, 2014
Click here to access Rights Offerings: Have Your Cake and Eat It, Too

Most closed-end fund, or CEF, investors are familiar with the mechanics behind a fund's IPO but know decidedly less about rights offerings. To be sure, IPOs are more prominent and typically outnumber rights offerings in terms of both frequency and size, but when your fund announces a rights offering, what is it doing? And what should you, as a shareholder, do? 

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Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individuals, financial advisors, and institutions.

Morningstar provides data on more than 385,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 8 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services and has approximately $195 billion in assets under advisement or management as of Sept. 30, 2012. We have operations in 27 countries.