No issue. Sloppy, truncated and elliptical language there and there is no disagreement.
"You are not given rights shares" was intended to mean that one is not given right shares free of charge in a rights offering simply because one is a common shareholder (or preferred). The rights shares are offered and must be exercised - purchased, sold if transferable, and if not they expire.
The rights offering that may be considered by Berkowitz for the common shareholders would be limited in amount (10-20%?) and so the demand would be high or high in any case.
It would be an interesting period of trading since the rights offering is usually open to shareholders first. I wonder in what direction the price would be driven and when and for how long? It seems like it should be driven higher so that the discount price offered would seem more attractive or a higher discount price made so greater capital can flow in. In either case, who would drive it up?
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