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Simple English definitions for legal terms
rights on
Read a random definition: facility and circumvention
A quick definition of rights on:
Rights on: When you buy stocks with cum rights, you have the right to buy more shares at a certain price. These rights may not have been given out yet, but you still have the option to use them later.
A more thorough explanation:
Definition: Rights on refers to the entitlement of a cum rights purchaser of stock to receive declared but undistributed rights, such as the right to purchase additional shares at a predetermined price.
Example: If a company declares a rights issue, it means that existing shareholders have the right to purchase additional shares at a discounted price. A cum rights purchaser of stock is entitled to these rights, even if they were not yet distributed at the time of purchase.
Explanation: The example illustrates how a cum rights purchaser of stock is entitled to receive declared but undistributed rights, such as the right to purchase additional shares at a discounted price. This means that even if the rights have not yet been distributed at the time of purchase, the purchaser is still entitled to them.