Last week a funny thing popped up in my little "play" brokerage account (where I own <100 shares of some stocks that trade below $5.00). A second line appeared below one of my stocks with a funny name and no listed value:
I had no clue what this was or meant (and still don't) but a couple days later a package arrived in the mail with a prospectus about this. It is called a subscription rights offering. The language of the prospectus might as well be Aramaic. I've tried, but I don't understand it. I also don't understand why the listed subscription price in the prospectus ($0.62) is higher than the market value (as you can see above). Have I won the right to purchase stock at a higher price than the general population??