Legal Definitions - XR

XR stands for EXRIGHTS.

This term is used in financial markets to indicate that a security, such as a stock, is trading without a specific entitlement or privilege that was previously attached to it. When a security trades "ex-rights," it means that a buyer purchasing the security on or after the specified "ex-rights date" will not receive the particular right or benefit that has been detached. Instead, the seller, who owned the security before the ex-rights date, will retain or receive that benefit.

Here are some examples illustrating how "EXRIGHTS" applies:

• Ex-Dividend Trading:

  Imagine "Global Tech Solutions" announces a cash dividend of $1.00 per share to its shareholders. The company sets an ex-dividend date of March 10th. This means that on or after March 10th, the company's stock will trade "ex-dividend," which is a common form of "ex-rights" trading.

  How it illustrates EXRIGHTS: If an investor buys shares of Global Tech Solutions on March 9th, they will be entitled to receive the $1.00 dividend. However, if another investor purchases shares on March 10th or any day thereafter, those shares are trading "ex-rights" (specifically, ex-dividend). The new buyer will *not* receive that particular $1.00 dividend; the seller, who owned the shares before March 10th, will be the one to receive it.

• Ex-Subscription Rights Offering:

  "Innovate Pharma Inc." decides to raise additional capital by offering its existing shareholders the opportunity to purchase new shares at a discounted price through a "rights offering." The company declares an ex-rights date of June 1st for this offering.

  How it illustrates EXRIGHTS: An investor who owns Innovate Pharma Inc. shares before June 1st will receive the subscription rights, allowing them to buy new shares at the special discounted price. If another investor buys shares of Innovate Pharma Inc. on or after June 1st, those shares are trading "ex-rights" for this specific offering. This means the new buyer will *not* receive the entitlement to participate in the discounted share purchase; those valuable rights remain with the seller who held the shares prior to the ex-rights date.