Renounceable Right

We’re the proud owner of 500 shares of stock for Botaniface, Inc., a company that manufactures and sells botanical anti-aging products. But, even though we like Botaniface, and even though the stock has been performing pretty well lately, we don’t necessarily want to buy any more shares right now. That’s why we were happy Botaniface issued a “renounceable right” this year, which is the option—but not the obligation—to buy additional shares at a discounted price.

The great thing about a renounceable right is that, not only do we not have to buy the shares if we don’t wanna, but we can sell the right to someone else. That way, even if we don’t exercise the right, we’re still not completely losing out on the deal.