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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 MatchesVoting rightsVoting rightsThe right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. Surface RightsSurface RightsThe rights (easements) to use the surface of land, including the right to drill or mine through the surface when subsurface rights are involved. Ex rightsEx rightsShares of stock that are trading without rights attached. Protected rightsProtected rightsPension benefits payable at retirement age which are derived from funds built from minimum contributions paid into an appropriate personal pension plan by the Government. These benefits are a substitute for part of S2P. 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. Further SuggestionsEx rights dateTrade-related intellectual property rights Rights Agreement (aka "Poison Pill") Special Drawing Rights (SDR) ex rights rights offering Appraisal rights Rights on rights issue Rights Offering Rights offering |
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