The day in which the rights detach from the underlying share is known as:
A)The 'ex- rights' date
B)The 'at- rights' date
C)The 'cum- rights' date
D)The 'div- rights' date

Question

Quizplus · Accepted Answer

The term used for the day in which the rights detach from the underlying share is 'ex-right' date. It means that from this day onwards, any new buyer of the shares will not enjoy the rights offered to the previous shareholders. Therefore, the correct option is A - The 'ex- rights' date. Choice B 'at-rights' is not a valid term used in the share market. Choice C 'cum-rights' date is the day on which the rights are still available to the shareholders who owned shares before the ex-right date. Choice D 'div rights' does not relate to the day in which the rights detach from the underlying share.

The Day in Which the Rights Detach from the Underlying