A Rights Offering Is the

question 20

Multiple Choice

A rights offering is the

• A) initial offering of securities to the public.
• B) offering of new securities to current shareholders on a pro-rata basis.
• C) sale of newly issued shares of stock to the general public.
• D) sale of securities directly to a select group of investors.

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Definitions:

Sole Proprietorship

A business owned and operated by a single individual, without any formal legal entity separation.

C Corporation

A legal structure for corporations in the U.S. where the owners are taxed separately from the entity, providing limited liability protection.

Partnership

A business structure where two or more individuals share ownership, profits, and responsibilities for managing the enterprise.

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