Investing What Does XRT Mean in Investing? By Mike Price Mike Price Twitter Mike Price is a personal finance writer with more than six years of prior experience working in the banking industry. He specializes in writing about investing, real estate and accounting for The Balance. His work has also been featured in other notable financial websites such as The Motley Fool. Mike has a master's in finance from the University of Utah. learn about our editorial policies Updated on June 30, 2022 Reviewed by Khadija Khartit Reviewed by Khadija Khartit Twitter Website Khadija Khartit is a strategy, investment, and funding expert, and an educator of fintech and strategic finance in top universities. She has been an investor, entrepreneur, and advisor for more than 25 years. She is a FINRA Series 7, 63, and 66 license holder. learn about our financial review board Fact checked by Rebecca McClay Fact checked by Rebecca McClay Rebecca McClay is a financial content editor and writer specializing in personal finance and investing topics. For more than 15 years, she's produced money-related content for numerous publications such as TheStreet and MarketWatch, and financial services firms like TD Ameritrade and PNC Bank. She covers topics such as stock investing, budgeting, loans, and insurance, among others. learn about our editorial policies Share Tweet Pin Email In This Article View All In This Article Definition and Examples of XRT How XRT Works What Is a Rights Offering? What It Means for Individual Investors Photo: Pixelfit / Getty Images Definition XRT is an extension to a stock ticker symbol that shows traders that a specific share of stock is ex-rights. “Ex-rights” means there is no active right from a recent rights offering attached to the stock because it has expired or been exercised. Definition and Examples of XRT XRT is a ticker symbol extension that shows a stock is ex-rights, or having no active rights attached to it because it has expired or been exercised. A ticker symbol is an abbreviation of the company’s name. For example, Microsoft's ticker symbol is MSFT and Netflix’s is NFLX. Ticker symbols, which got their name from the ticker tape that was originally used for quotes, are used to quickly identify a stock. The extension appears after the ticker symbol and is separated from it by a period. Note Ticker symbol extensions aren’t common but they are used. For example, the extension “A” means class-A shares are being purchased. The extension “W” means the security is a stock warrant. In this case, ex-rights means the stock recently had a rights offering but there are no rights attached to the specific shares being traded. A rights offering is a corporate event where a company allows existing shareholders to buy new stock, often for a discounted amount, so that the shareholders can keep their existing shares of the company. For example, let’s say Microsoft did a rights offering. Shares trading as MSFT.XRT wouldn’t have the rights to buy attached. How XRT Works Understanding ticker extensions was more critical when trades were made based on ticker tape. Now, modern brokerage websites will report any necessary information about the stock you are purchasing. In a rights offering, shares that have a right will trade with the extension “R” and shares that are ex-rights will trade with the extension “XRT.” Shares that are ex-rights will trade for a lower price because the buyer receives no value for the right. Shares with rights will trade higher because the buyer can use the right to buy more stock at a discount to the market price. Note Stock can be ex-rights because the rights have expired, already been exercised, or separated from the stock and sold. Shareholders typically have anywhere from two weeks to four months to decide what to do with the rights before those rights expire. What Is a Rights Offering? A rights offering is when a corporation is going to issue new shares and allow existing shareholders to buy at a discounted price before the shares are offered to the public. The rights can be exercised, sold with the shares of stock, or separated from the stock and sold separately. Corporations use rights offering to raise equity capital without diluting the stock of existing shareholders as much. In a normal stock offering, new shares are issued directly to the public, and each share sold reduces the portion of the company owned by existing shareholders. A rights offering is still dilutive because shareholders have to contribute more money to retain their ownership percentage. However, it reduces the dilution by discounting the offer price. What It Means for Individual Investors Rights offerings aren’t common, but you’ll usually be notified by the broker if one has occured. You can call your broker if you choose to exercise or unattach and transfer the rights. In any new share offering, the business should be holding the offering for an investment that will return more than the cost of capital. Investors who buy stock require a certain rate of return, and any share issuance invested at lower than that rate is dilutive, or one that would reduce the value of the shares. A rights offering is less dilutive than a public share offering, but the same principle applies. Any time a new offering is announced, verify that the funds will be used for a profitable investment. Note Investors who want to buy a stock that has an ongoing rights offering may want to buy a stock with rights, to increase their position at a discount, but you should calculate the difference between the price with the rights and the market price. Because shares with rights will trade at a premium to shares that are ex-rights, the premium may be the same amount or more than the difference between the price of the shares with rights price and their market price. Meaning it wouldn’t be worth it to buy the shares with rights because the premium would cost more than the benefit of the rights. Key Takeaways XRT is a ticker symbol extension that means a stock is ex-rights.“Ex-rights” means that in an active rights offering, those specific shares don’t have rights.Shares with rights typically trade for a premium to shares that are ex-rights. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning! Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Nasdaq. “XR Definition.” FINRA. "Corporate Actions by Public Companies: What You Should Know."