What is the Trade date in [stock] Rights

I have a stock that issued Rights to the shareholders. The Rights entitled the shareholders to subscribe new shares at a discounted price. Let's say I received 100 Rights. I exercised 80 rights to subscribe new shares and sold the other 20 Rights.

Listed below are the dates from the prospectus.

May 26, 2008 -- Record date for the allocation of subscription rights (close of business) May 27, 2008 -- Existing shares begin trading ?ex-subscription right? -- Start of rights trading -- Start of subscription period June 9, 2008 -- End of rights trading period June 10, 2008 -- End of subscription period June 13, 2008 -- First trading day of new shares June 17, 2008 -- Payment and delivery of the new shares

I assume the acquisition date for the Rights would be same as that of the underlying stock?

What would be the sale date of the 20 Rights that I sold? And what is acquisition date of the New share that I received from the Rights subscription?

TIA

Reply to
0b3hks001
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Yes.

What date did you sell them? Presumably, between May 27 and June 9.

It's either the acquisition date of the original stock, or the exercise date (date on which you told the company to exercise your rights). I don't know which, but posting this will get someone else to specify.

Seth

Reply to
Seth

I didn't specifically sell them. After the max. # of whole shares were subscribed, the broker sold the remaining # of Rights.

There is a final date for exercisinng the Rights; and I told them a few days before.. So I guess the acquisition date for the new shares would be the final date for subscription, June 10 ? [It is not free, I had to pay for the new shares]

TIA

Reply to
0b3hks001

Didn't you get a statement from the broker? That should have the trade date. (I don't understand, anyway; if the max # of shares were already subscribed, what can the remaining Rights be used for? Or did it take many rights to buy one share, and the Rights corresponding to the remaining fractional share were sold?)

Seth

Reply to
Seth

I agree, but I think he should have asked about the acquisition date and basis too.

I think that the acquisition date would be that of the shares that were issued if the rights had significant value relative to the shares. If the value of the rights that come from a share is less than 15% of the value of the share, he has the option of declaring the basis of the sold rights to be zero and not reducing the basis of the other shares. He can always allocate the basis proportionally to the value of the rights and shares.

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Reply to
DF2

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