ex-rights

ex-rights definition - business

ex-rights

Used to describe a stock that trades without giving the stockholder the privilege to receive rights to buy shares of a new stock issue. Because new shares are sold at below-market price to rights holders, the rights have value. Thus, a stock trading ex-rights is worth less than the same stock with rights attached. Also called rights off. Compare rights on. See also rights offering.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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