Registration Rights | Practical Law

Registration Rights | Practical Law

Registration Rights

Registration Rights

Practical Law Glossary Item 6-382-3742 (Approx. 2 pages)

Glossary

Registration Rights

Contractual rights to participate in or require a public offering of equity securities. These rights are usually contained in a registration rights agreement entered into by an issuer and certain stockholders. There are two principal types of registration rights:
  • Demand registration rights, where an investor can force a company to file a registration statement to register the holder’s securities so the investor can sell them in the public market without restriction.
  • Piggyback registration rights, where the investor is entitled to register its securities when either the company or another investor initiates the registration. Holders of piggyback rights are allowed to include their securities in a registration initiated by the company or another investor. This type of registration right is seen as inferior to demand registration rights, because holders of piggyback rights cannot initiate the registration process.
For more information, see: