A stock trading with cum rights entitles new buyers, rather than sellers, to receive rights that have been declared but not yet distributed. In a rights issue, the share price before the issue is called cum-rights price, while the price after the issue is known as ex-rights price. Rights issues involve a company offering new issues of shares to existing shareholders who have the right to resell the shares to other investors.
The term “cum rights” has the same meaning of “rights on”.
