L t 3Lecture3 II NVESTMENT Stock right / Warranty/g y Investment property S TOCKRIGHT What is a stock rights ?g A stock rights are rights to buy new shares for cash to existing shareholders by specific i f t dpriceonfutureday. Why issue shares to existing shareholders? Legally a rights issue must be made before a new Legally a rights issue must be made before a new issue to the public. This is because existing shareholders have the “right of first refusal” on h hthenewshares.