Cum Rights


DEFINITION of 'Cum Rights'

A shareholder of record that qualifies for a rights offering declared by a company. Cum rights allow existing shareholders to buy new shares, typically at a price lower than the current market price of the shares in question. Furthermore, the rights themselves have value apart from the value of the existing shares.


After a company has announced that it will be issuing new shares and before such an offering is completed, the question arises: Does the purchaser of existing shares also have the right to take part in the new offering or does that right stay with the seller? Cum rights addresses this situation. What's more, as hinted at above, when a share is cum rights, it means that it includes the right to purchase new issues.

  1. Record Date

    The cut-off date established by a company in order to determine ...
  2. Cum Coupon

    A bond status that means the buyer of the bond has the right ...
  3. Rights Offering

    An issue of rights to a company's existing shareholders that ...
  4. Ex-Rights

    Shares of stock that are trading but no longer have rights attached ...
  5. Holder Of Record

    The name of the person who is the registered owner of a security ...
  6. Rights

    A security giving stockholders entitlement to purchase new shares ...
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