A stock is said to sell "ex-rights"
A)when the period in which the subscription privilege is to be exercised has expired.
B)when transfer of stock ownership no longer carries with it the privilege of subscription.
C)after the rights have all been exercised and the new issue is completely sold.
D)after the terms of the subscription have been made public.

Question

Quizplus · Accepted Answer

When a stock is said to sell "ex-rights," it means that the transfer of stock ownership no longer carries with it the privilege of subscription. This happens after the record date, which is the date on which the company finalizes the list of shareholders who are entitled to receive the subscription rights. Once the record date has passed, any subsequent transfer of shares will be "ex-rights."

A Stock Is Said to Sell "Ex-Rights