Ex-rights refers to a share of stock that is selling without any associated rights to buy additional shares being offered by the issuer. Because these rights have value, the ex-rights shares sell for a lower price than would shares that have the rights associated with them. The shares may be designated as ex-rights for any of the following reasons:

  • The rights have expired

  • The rights have been exercised

  • The rights have been transferred to another investor

Related Courses

Corporate Finance 
Treasurer's Guidebook