Trading & MarketsQuestion 90 of 125
A stock trading 'ex-rights' means the stock:
a.Includes the subscription rights in its price
b.Trades without the value of the subscription rights, which now trade separately
c.Cannot be sold
d.Has been delisted
Explanation
When a stock trades ex-rights, buyers no longer receive the subscription rights associated with a rights offering, and those rights trade separately in the market. The stock price typically adjusts downward to reflect the removed value of the rights.
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