2023-12-30T15:07:55-08:00[America/Los_Angeles]
Will U.S. stock dividends be ex-rights?
In finance, the term "ex-rights" refers to a stock that is trading without the rights attached to it, such as the right to receive dividends. When a company issues new shares, existing shareholders may be given the right to purchase these shares at a discounted price. This is known as a rights offering. When a stock is trading ex-rights, it means that the rights offering has occurred and the stock no longer carries the right to participate in the offering.
As for U.S. stock dividends, they can be ex-rights if the company has announced a rights offering and the ex-rights date has passed. This means that investors who purchase the stock after the ex-rights date will not be eligible to participate in the rights offering and may miss out on the opportunity to purchase additional shares at a discounted price.
It's important for investors to stay informed about ex-rights dates and other corporate actions that may impact their investments. This information is typically available through company announcements and financial news sources. Understanding the implications of ex-rights and other corporate actions can help investors make informed decisions about buying, selling, or holding onto their stocks.
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