What does it mean: "Two business days before the record date, the - ProProfs Discuss
Advertisement

What does it mean: "Two business days before the record date, the shares start trading ex rights and the rights begin to trade as a separate entity"?

Asked by Frey, Last updated: Sep 30, 2021

+ Answer
Request
Question menu
Vote up Vote down

1 Answer

John Smith

John Smith

John Smith
John Smith

Answered Sep 08, 2016

Heres what the text states: two business days before the record date, the shares start trading ex rights and the rights begin to trade as a separate entity.so during the cum rights period, if you purchase common shares in the company you have also purchased rights in the company as long as you hold your shares long enough to be recognized as a common shareholder on the record date.on the first ex rights date, those purchasing common shares would not be eligible to receive rights. at the same time, the rights start to trade as though they are a separate security from the common shares and will trade separately as a security on the stock exchange.
upvote downvote
Reply 

Advertisement
Advertisement
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader

Email Sent
We have sent an email to your address "" with instructions to reset your password.