Simple English definitions for legal terms
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Term: EX RIGHTS
Definition: Ex rights means without rights. When shares are traded ex rights, it means that the value of the subscription privilege has been deducted, and the purchaser has no right to buy shares of a new stock issue. This is also abbreviated as X or XR and is sometimes called rights off.
Definition: Ex rights, adv. Without rights. Shares are traded ex rights when the value of the subscription privilege has been deducted, giving the purchaser no right to buy shares of a new stock issue. It is abbreviated as X or XR. It is also known as rights off.
The examples illustrate that when shares are traded ex rights, the purchaser does not have the right to buy any new shares issued by the company. This means that they are buying the shares without any additional benefits or privileges that come with the subscription privilege.