When a stock sells ex-rights, the sale of the shares no longer entitles the purchaser to receive a right.

Name: When a stock sells ex-rights, the sale of the shares no longer entitles the purchaser to receive a right.
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Question

Quizplus · Accepted Answer

When a stock sells ex-rights, it means that the right to purchase additional shares at a discounted price has been expired or separated from the shares, so the sale of the shares no longer entitles the purchaser to receive a right. Therefore, the statement is true.

When a Stock Sells Ex-Rights, the Sale of the Shares