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A contractual right that provides an investor who owns restricted stock in a corporation to require that the corporation list the shares for sale to the public, which provides the investor with the opportunity to sell its stock (and ideally receive a return on its investment).
In an unregistered securities offering, an agreement between the issuer and the purchasers of the security that creates an obligation for the issuer to register the re-offer and resale of the securities being offered at some time in the future (usually within six months).
Registration rights take the form of either "piggyback" or "demand." Piggyback rights allow investors to have their shares included in a registration that is currently in the planning stages by the company. Piggyback rights generally do not cause issues for a firm.
There are two types of registration rights: demand and piggyback. Demand registration rights enable the stockholder to require the issuer to register all or a portion of its shares.
Form S-3 is the registration statement that the Securities and Exchange Commission (SEC) requires reporting company issuers to file in order to issue shelf offerings.
With demand registration rights, investors have a right to force a company to register shares with the SEC. Once registered, the shareholders can then sell their shares to outside investors and exit the company.
?Definition? A registration rights provision in a term sheet allows an investor to require a company to register the investor's shares with the SEC when certain conditions are met, ensuring that the investor has the opportunity to sell their shares in the public market.