πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!

  • google app store apple app store
  • βœ–

      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.Β 

      Practice Next
      ask-question