Categories: Stocks

Cum Rights

Cum rights means ‘with rights’ and allows a shareholder to subscribe to Rights issue offered by a company. The owner of ‘cum rights’ shares is entitled to any upcoming, already declared rights. Generally, the price of such Rights issue is lower than the market price of shares. The opposite of ‘Cum rights’ is ‘Ex-rights’, which means ‘without rights’ or shares that do not have any such rights or entitlement for automatically participating in a Rights issue. In case the company comes up with a Rights offering, shareholders with cum rights can participate and avoid dilution. Being able to exercise the rights is also profitable for the shareholder as the Rights issue comes at a discount.

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