Which of the Following Statements Is FALSE

question 50

Multiple Choice

Which of the following statements is FALSE?

• A) Secondary shares are shares sold by existing shareholders, including the company's founder.
• B) If a firm's management is concerned that its equity may be underpriced in the market, by using a rights offering the firm can continue to issue equity without imposing a loss on its current shareholders.
• C) In Australia, most SEOs are cash offers.
• D) In a rights offer, the firm offers the new shares only to existing shareholders.

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Definitions:

Baratarian Pirates

A group of 19th-century pirates led by Jean Lafitte, who operated out of the Barataria Bay south of New Orleans, and later aided the United States in the War of 1812.

French Revolution

A pivotal period of radical social and political upheaval in France from 1789 to 1799, leading to the decline of monarchies and churches and the rise of democracy and nationalism.

Political Parties

Organized groups of people with similar political aims and opinions, that seek to influence public policy by getting their candidates elected to public office.