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cum rights

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Financial Dictionary

Cum Rights

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

Investopedia Commentary

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 Links

Stock Basics Tutorial
What Owning A Stock Actually Means
Knowing Your Rights As A Shareholder

See also: Ex-Rights, Holder of Record, Record Date, Right, Rights Offering, Shares

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Financial Dictionary

cum rights

See rights on.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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