Where rights are renounceable, their price moves in response to movements in the share's (ex-rights)price.

Name: Where rights are renounceable, their price moves in response to movements in the share's (ex-rights)price.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a company offers renounceable rights, the price of those rights is typically closely tied to the price of the underlying shares. As the share price goes up or down, so too will the price of the renounceable rights.

Where Rights Are Renounceable, Their Price Moves in Response to Movements