Cum

Cum is the latin word meaning "with". In an investing context, cum describes any rights or privileges attached to owning a security. For example, a share bought or sold cum a benefit, confers that benefit on the purchaser.

Among the common phrases you may run across are: cum rights; cum dividend; cum scrip; cum capitalisation. So, if you acquire shares in this state, you'll get the added benefit noted!

Conversely if you buy shares ' ex ' dividend, you won't have the benefit of the dividend payout.

See also: Online share dealing service Stockmarket Centre

Last Updated: June 2007 © Moneyextra.com

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