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Anonymous

06 May 2020

General Investing

Can anyone explain what is ex-rights?

Can anyone explain what is ex-rights.
What does it mean, can buy/sell?

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Used to describe a stock that trades without giving the stockholder the privilege to receive rights to buy shares of a new stock issue. Because new shares are sold at below market price to rights holders, the rights have value. Thus, a stock trading ex-rights is worth less than the same stock with rights attached.

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Rights offering are coporate actions where shareholders are able to purchase more stocks at a discounted price. Ex-rights refers to shares which these rights have expired.

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