|
|
Ex rights |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Ex rightsShares of stock that are trading without rights attached.Ex rightsPurchase of shares without entitlement to current rights issues. This entitlement remains with the seller of the shares.Similar MatchesSurface 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. Cum rightsCum 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. 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. 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 issueRights issueAn offer made by a quoted company to its shareholders to enable them to buy new shares in the company at a discount to the market price.Existing shareholders are usually offered shares in proportion to their existing holding. For example in a one for five rights issue, a shareholder would be invited to buy one new share for every five shares already owned. The new shares are offered at a discount to the current market price and because of that the rights have a value in themselves and can be separately sold.For capital gains purposes, the shares acquired following a rights issue are deemed to have been acquired at the same time as the original shares.Shareholders who hold a company's shares in a PEP, ISA or SIPP account can only take up their rights if they have sufficient funds in those accounts to exercse the rights. Further Suggestionsrights offeringAppraisal rights Ex rights date Rights offering Property rights Voting rights Rights Offering Trade-related intellectual property rights Cum rights Rights on protected rights |
|
|
|