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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. Rights Agreement (aka "Poison Pill")Rights Agreement (aka "Poison Pill")An anti-takeover arrangement often established by a company in anticipation of a hostile takeover attempt. The company appoints a Rights Agent who will issue Rights certificates to each shareholder at the time of the takeover attempt. The shareholder may then exercise these rights to receive additional shares of stock and/or debentures, making the target company more expensive to acquire as a result of the additional shares outstanding, or the additional debt. Rights onRights onShares trading with rights attached to them. Special Drawing Rights (SDR)Special Drawing Rights (SDR)A form of international reserve assets, created by the IMF in 1967, whose value is based on a portfolio of widely used currencies. Further SuggestionsProperty rightsrights issue Ex rights Rights Offering Rights offering Trade-related intellectual property rights rights offering Appraisal rights protected rights ex rights Ex rights date |
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