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Acronyms that contain the term theoretical ex-rights price 

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TERP

Theoretical Ex Rights Price

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What does theoretical ex-rights price mean?

Theoretical ex-rights price
Theoretical ex-rights price (TERP) is a situation where the stock and the right attached to the stock is separated. TERP is a calculated price for a company's stock shares after issuing new rights-shares, assuming that all these newly issued shares are taken up by the existing shareholders. The consequence would be that the price will be lower than the old shares but higher than the new issued shares.

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