In a rights offering, existing shares begin to trade ex-rights two trading days _____________.

A) Prior to the holder-of-record date.
B) After the announcement date.
C) Prior to the announcement date.
D) After the holder-of-record date.
E) Prior to the expiration date.

Ex-Rights

A status of a stock that signifies it is being traded without the right to receive the most recent dividend payment or issuance.

Holder-Of-Record Date

The specified date on which the shareholders of record are entitled to receive a forthcoming dividend or participate in corporate events.

Announcement Date

The specific date on which a company releases significant information to the public, often regarding earnings, product launches, or other major events.