A firm has a rights offering with a record date of Thursday, April 24, and and expiration date of Friday, May 31. You buy the stock on Friday April 25. You will be able to exercise the rights:

Question

Quizplus · Accepted Answer

Since you purchased the stock on Friday, April 25, which is after the record date of Thursday, April 24, you will not own the rights associated with the rights offering. Rights are typically assigned to shareholders of record as of a specific date, and in this case, you would not be considered a shareholder of record on the record date.

A Firm Has a Rights Offering with a Record Date