Nil paid

The term nil paid (alternatively, “nil-paid”) denotes rights that are tradeable but that were not originally paid for by the seller. Such a right is simply a right to purchase more shares, usually at the current share price or a discount, given to existing shareholders by a company. If the rights are renounceable, the shareholders can choose to sell them on the market. Conversely, if the shareholders decide to exercise the rights, they must pay for the securities they have been given the right to buy.