An Issue of Shares That Entails Existing Shareholders Receiving New

question 68

Multiple Choice

An issue of shares that entails existing shareholders receiving new shares for free is called a:

• A) warrant.
• B) back door issue.
• C) rights issue.
• D) bonus issue.

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Definitions:

Insufficient Funds

Insufficient funds occur when an account does not have enough money to cover checks or electronic withdrawals made against it, often resulting in fees and declined transactions.

Preferential Lien

A lien that gives the creditor the right to be paid before other creditors if the debtor defaults or assets are liquidated.

Existing Debt

Financial obligations or loans that a person or entity is currently responsible for.

Cram Down

When the court forces dissenting creditors whose claims would be impaired by a proposed plan to accept the plan when the court can find that it is fair and equitable to the class of creditors whose claims are impaired.