What Is the Primary Reason Why Securities Are Sometimes Offered

question 17

Multiple Choice

What is the primary reason why securities are sometimes offered through a rights offering?

• A)To avoid corporate taxation of excessive profits
• B)To provide additional income to the current shareholders
• C)To assist current shareholders in maintaining their current proportional ownership position
• D)To replace a regular stock dividend
• E)To allow shareholders to avoid taxes by purchasing shares directly from the issuer