Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The date on which any right on a stock that has been declared, but not distributed, belongs legally to its seller rather than the buyer. That is, when one sells a stock on or after the ex-rights date, the right will remain with the seller when it is distributed. On the other hand, if it is sold before the ex-rights date, the right will go to the buyer. See also: Ex-dividend date.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The first day of trading on which new buyers of a firm's stock will not be entitled to receive recently declared rights to buy shares in a new security issue.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.