Ex Right Vs. Cum Right

Cum rights means the where it included the dividend not yet declared but the purchaser will be entitled to receive it when the company will declare it and ex-rights means the seller is entitled for the post selling dividend i.e it does not include the dividend yet to be declared and the seller becomes entitled to receive it on its declaration

A share is described as cum rights when the purchaser is entitled for current rights and A share is described as Ex Rights when the buyer is not entitled for the Rights. The seller remains the beneficiary.

Shares that are trading cum-rights can be sold to another individual with the rights attached. This is the opposite of ex-rights, which do not allow the transfer of rights from an old shareholder to a new shareholder during the two business days prior to the record date.

The price of a stock with cum rights is normally higher than that of a stock with ex-rights.

Ex-rights shares are worth less than shares which are not yet ex-rights - the ex-rights shares do not give a shareholder access to a rights offering. Renounceable rights may trade separately, allowing shareholders to choose to sell their rights rather than exercise them.

Ex Rights  + Rights = Cum rights

Cum rights - Rights = Ex rights 

A period from the point Rights are announced till the record date is called cum right. Anyone purchasing the share within this period in entittled to rights as the pruchase was made before record date. Post record date shares trade ex-right and the new buyer wll not be entittled to rights as they were boutght post record date.

Ex-right price will be lower than cum right as exright reflects diluted share price post inclusion of rights shares as compared to cum right which just signifies the option to exercise a right but not yet exercised.

Can anyone please explain to me the term FPO under shares?