Cum Rights

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



Taobiz explains Cum Rights
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.