Nil-Paid

As an owner of BrainGoo, Inc. stock, we were pretty excited to hear that the tech company was about to do a big ol’ rights issue. The deal is that we can buy up to 5% of our current amount of shares for the low, low price of $5.22 per share. This is good news, because those shares are currently trading at about $8.50 on the open market. Even better news: the rights to those shares are renounceable, which means we can turn around and sell ‘em. If we do sell them, then they are what we call “nil-paid” rights: they didn’t cost us anything to acquire—the rights, not the shares—but we are able to sell them for a profit.

Why “nil-paid?” Because nil…was paid.