rights issue

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rights issue

an issuing of extra shares. A company may raise additional capital from its members as opposed to from the public at large by issuing extra shares; this is called a rights issue. See PRE-EMPTION.
References in periodicals archive ?
on Tax Accounting, Report on Capitalization Issues Raised Under Sections 162 and 263 by INDOPCO, Inc.
Observation: Revenue procedure 98-17 signals that it is the IRS's intention to continue addressing capitalization issues one by one, taxpayer by taxpayer.
(8) In public remarks, senior IRS and Treasury officials downplayed this perception, suggesting the increase in capitalization issues was due in part to the changing nature of the American economy and the emergence of an increasing array of intangibles that had never before been scrutinized under section 263.
Olson said that additional guidance on capitalization issues would likely be issued, but the resources are not currently available for such a project.
The ANPRM's purpose is to reduce disputes on capitalization issues related to intangible assets.
Brokers said short-term funds are increasingly flowing out of large capitalization issues to medium and small caps on the Tokyo market mainly because investors are concerned about the downside risks of international blue chips along with a slump in their U.S.
In an advance notice of proposed rulemaking (REG-125638-01), the IRS announced its intention to issue regulations that will address capitalization issues involving the significant-future-benefit test (see "Proposed Guidance on Capitalization" below).
Thus, almost 10 years after INDOPCO, the ANPRM was issued to clarify the long-term future-benefit test by outlining the framework for capitalization issues that the IRS and Treasury expect to provide.
TEI also commended Treasury for its efforts to provide timely and administrable guidance, citing the government's response to the September 11 attacks, the re-proposed research credit regulations, the notice on capitalization issues, and, most recently, the notice on the Rite Aid decision (dealing with the loss disallowance rules).
Indeed, the National Taxpayer Advocate identified capitalization issues as the most litigated issue for business taxpayers in the 1998 Report to Congress, and there is no sign the controversy has abated.
Further, a government-favorable resolution of this issue could encourage the IRS to pursue other capitalization issues.