Cum Rights

Definition - What does Cum Rights mean?

Cum Rights is a term used to describe a stock that is the subject of a rights offering and is trading with the rights attached to the common stock.

Testopedia explains Cum Rights

When a corporation declares a rights offering each share of stock will receive a right. When the stock is trading in the market place with the rights attached new purchasers of the stock will receive the right when they purchase the shares in the market place. The stock is said to be trading cum rights.

Connect with us

Testopedia on Linkedin
Testopedia on Linkedin
"Testopedia" on Twitter

Sign up for Testopedia's Free Newsletter!