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Cum rights |
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Cum rightsWith rights.Cum rightsWhen a company announces a rights issue, existing shareholders get the right to buy new shares, usually at a discount to the current share price. That right attaches to the existing shares and it has a value. In the period after the announcement of an impending issue and before it has been completed, the question is whether the purchaser of existing shares also gets the right to participate in the rights issue or whether that right stays with the vendor.To cope with this situation the market have developed the system of 'cum rights' and 'ex rights'. When a share is cum rights, it means that it is offered for sale with any associated rights. When it is ex rights it is offered for sale without the rights. The share price of the shares will be higher cum rights than it will be ex rights.Similar MatchesEx rightsEx rightsPurchase of shares without entitlement to current rights issues. This entitlement remains with the seller of the shares. Ex rightsEx rightsShares of stock that are trading without rights attached. Ex rights dateEx rights dateThe date on which a share of common stock begins trading ex-rights. Property rightsProperty rightsRights of individuals and companies to own and use property as they see fit and to receive the stream of income that their property generates. Voting rightsVoting rightsThe right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. Further Suggestionsprotected rightsAppraisal rights Rights Offering rights offering rights issue Rights offering Rights Agreement (aka "Poison Pill") Rights on Surface Rights Trade-related intellectual property rights Special Drawing Rights (SDR) |
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