Cum Rights

What Does Cum Rights Mean?

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

Investopedia explains Cum Rights
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.

Related Terms

Ex-Rights
Holder of Record
Record Date
Right
Rights Offering
Shares
More Related Terms

Related Links

Stock Basics Tutorial - If you're new to the stock market and want the basics, this is the tutorial for you!
What Owning A Stock Actually Means - Think owning a stock gives you special privileges with the company? Think again.
Knowing Your Rights As A Shareholder - We delve into common stock owners' privileges and how to be vigilant in monitoring a company.

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