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 the stockholder buys the stock, they no longer get a right toward the future purchase of stock.
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 sold "ex-rights", it means that the stock no longer comes with the right to purchase additional shares in the future. This typically occurs after a company has announced a new issue of shares, and existing shareholders are given the opportunity to purchase new shares at a discounted rate. Once this subscription period has passed, the stock is considered to be trading "ex-rights".

A Stock Is Said to Sell "Ex-Rights