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Cum Rights

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Dictionary Says

Definition of 'Cum Rights'

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

Investopedia Says

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 Definitions

  •

    Ex-Rights

    Shares of stock that are trading but no longer have rights attached because they have either expired, been transferred to another investor or been exercised. The rights originally ...
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  • Rights

    A security giving stockholders entitlement to purchase new shares issued by the corporation at a predetermined price (normally less than the current market price) in proportion to the ...
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  • Rights Offering (Issue)

    Issuing rights to a company's existing shareholders to buy a proportional number of additional securities at a given price (usually at a discount) within a fixed period.
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    • Holder Of Record

      The name of the person who is the registered owner of a security and who has the rights, benefits and responsibilities of ownership. The holder of record for a stock typically has ...
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    • Shares

      A unit of ownership interest in a corporation or financial asset. While owning shares in a business does not mean that the shareholder has direct control over the business's day-to-day ...
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    • Record Date

      The date established by an issuer of a security for the purpose of determining the holders who are entitled to receive a dividend or distribution.
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    • Cum Coupon

      A bond status that means the buyer of the bond has the right to receive the current coupon payment on the bond. Cum-coupon bonds require the buyer to pay the seller the accrued interest ...
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