The National Directory of Certified Public Accountants

Ask A CPA - Investments & Financial Planning

In Relation To The Stock Market , What Does The Expression Ex Rights Mean ?

Subscription Right is a privilege granted to owners of certain stocks to purchase newly issued securities in proportion to their holdings usually at prices below the current market price. Rights have a market value of their own and are actively traded. They are different from warrants in that they must be exercised within a relatively short period of time. "Ex-rights" in connection with the rights offering with a stock purchase means shares of stock that are trading without the rights attached. The Ex-rights date is the date on which a share of common stock begins trading "ex-rights", without the right.

If you need professional help with "Investments & Financial Planning" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.