Cum Rights

A situation in which the shares held by holders of record are qualified for a rights offering declared by a company.




Shares that are trading cum-rights can be sold to another individual with the rights attached. This is the opposite of ex-rights, which do not allow the transfer of rights from an old shareholder to a new shareholder during the two business days prior to the record date.

The price of a stock with cum rights is normally higher than that of a stock with ex-rights.




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Related Terms

Ex-Rights

Holder of Record

Record Date

Right

Rights Offering

Shares

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