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    Question

    What is meant by cum rights

    shares?
    A Shares that are issued at a discount Correct Answer Incorrect Answer
    B Shares that include the option to subscribe to a rights issue Correct Answer Incorrect Answer
    C Shares that can be redeemed after a certain period Correct Answer Incorrect Answer
    D Shares that do not have voting rights Correct Answer Incorrect Answer
    E Shares that are issued at a premium Correct Answer Incorrect Answer

    Solution

    Cum rights shares refer to shares that are traded with the entitlement to participate in a forthcoming rights issue. This means that the existing shareholders have the option to subscribe to the new shares being issued in the rights issue, usually at a price lower than the current market price. 

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