Ruby Tuesday Stock Price, News & Analysis

The ticker symbol RT is used on U.S. exchanges as a rights trading symbol in connection with transferable rights offerings by certain closed-end funds. In these offerings, existing common shareholders of a fund receive rights that trade separately on an exchange under a symbol that includes the fund’s main ticker plus the suffix RT. These rights allow eligible shareholders to subscribe for additional common shares of the fund at a specified subscription price and under defined terms.

According to the available information, RT has appeared in connection with rights issued by closed-end funds whose common shares trade on the New York Stock Exchange (NYSE) or NYSE American. In these cases, the rights are granted to record date shareholders and may trade for a limited period before expiring. The rights provide a mechanism for the fund to raise additional capital while giving existing shareholders the opportunity to maintain or increase their ownership.

How rights offerings using RT typically work

In a transferable rights offering, each common shareholder on a specified record date receives a certain number of rights for each common share held. A fixed number of rights is required to purchase one new common share at the subscription price, which is often determined by a formula based on the market price and/or net asset value of the fund’s common shares. Fractional shares are generally not issued, and holders with fewer rights than the required amount may still be entitled to subscribe for at least one additional share.

Record date shareholders who fully exercise the rights initially issued to them may also be granted an over-subscription privilege. This allows them to request additional common shares that were not purchased in the primary subscription, subject to availability and allocation procedures described in the offering documents. Rights acquired in the secondary market generally do not carry this over-subscription privilege, as stated in the offering summaries.

Trading and expiration characteristics

The rights associated with these offerings are expected to trade on the relevant exchange under symbols that include the fund’s main ticker and the suffix RT. For example, offering documents describe rights expected to trade on NYSE or NYSE American as UTF RT, EMO RT, or GLU RT, with trading beginning on a specified date. The fund’s common shares trade "Ex-Rights" from a particular date, meaning new buyers of the common shares after that date do not receive the rights.

The rights offerings are made pursuant to effective registration statements and prospectus supplements filed with the U.S. Securities and Exchange Commission. The offerings have defined expiration dates and times, after which unexercised rights lapse. Any new common shares issued as a result of the offering may not be entitled to distributions with record dates that occur before the shares are issued, as noted in the offering summaries.

Purpose of rights offerings

The funds involved in these rights offerings indicate that increasing fund assets through the exercise of rights can provide additional capital to pursue their stated investment objectives, which emphasize total return with an emphasis on income. They also note that a larger asset base may allow fixed operating costs to be spread over more assets, potentially affecting the expense ratio, and that issuing additional common shares could influence the liquidity of the fund’s common shares on the exchange.

Each rights offering is governed by detailed terms set out in a prospectus supplement and accompanying prospectus. These documents describe the subscription formula, record date, expiration date, trading arrangements for the rights, over-subscription procedures, and risk considerations for investors.

Important considerations

The information available describes how rights trading symbols with the RT suffix function in the context of specific closed-end fund offerings. It does not provide an independent business description for a standalone company named "RT." Instead, RT should be understood as part of the temporary trading symbols used for transferable rights associated with these funds’ capital-raising activities.