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CUM RIGHT PRICE
what does "cum-right price" actually mean???
Replies (4)
rahuljee when cum right price mean cumulative right price when div is declared on any sahres on that time shares are traded at cum right price ..its mean amount of divided is also included in that ... for better understannding read AS-13 PROPERLY
Dear Rahul,
Pls note that -
"CUM RIGHT PRICE" means the price which is paid by the buyerand is inclusive of the Right entitlement attached to it.
It means it will also entitle the buyer to receive the Right shares, whenever those are distributed by the Issuer Co. after the acquisition of the Shares by the Buyer.
Cum Rights : A share is described as cum rights when the purchaser is entitled for current rights
Ex Rights : A share is described as Ex Rights when the buyer is not entitled for the Rights. The seller remains the beneficiary.
Cum rights means the buyer is entitled for the pre acquisition dividend and ex-rights means the seller is entitled for the post selling dividend
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