What does ex-rights and ex-dividend mean?

Ex-rights and ex-dividend are terms used in finance to describe the status of a stock in relation to its rights and dividends. When a stock is trading ex-rights, it means that the buyer of the stock is not entitled to the rights associated with the stock, such as the right to buy additional shares at a discounted price. This typically occurs after a company has announced a rights offering to existing shareholders, and the stock begins trading without the rights attached. Similarly, when a stock is trading ex-dividend, it means that the buyer of the stock is not entitled to the next dividend payment. This typically occurs after the company has announced a dividend payment to shareholders, and the stock begins trading without the dividend attached. In both cases, the ex-rights and ex-dividend dates are important for investors to be aware of, as they determine whether or not they will receive the benefits associated with owning the stock. Overall, ex-rights and ex-dividend are important terms in finance that indicate the status of a stock in relation to its rights and dividends, and can impact the value and attractiveness of the stock to investors.