DEFINITION of 'XRT'

A notation on a ticker tape that is used to indicate that a security is trading on an ex-rights basis. The term is used to dispel any confusion that may arise in the case of trades involving a security that has recently had a rights offering, by confirming that such rights remain with the seller of the security, and do not accrue to the buyer. XRT is an abbreviation of the term "ex-rights."

BREAKING DOWN 'XRT'

A stock that goes ex-dividend typically trades lower from the date when it does so. Similarly, a stock that has just gone ex-rights will also generally trade lower. For example, Widgets World with the ticker symbol WW, which has just finished a rights offering, will typically trade lower as soon as it goes ex-rights, at which point it will be referred to as WW.XRT.

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