Which One of These Is Not a Reason Given for Issuing

question 72

Multiple Choice

Which one of these is not a reason given for issuing shares without a rights offering?

• A)The risk of the subscription price exceeding the market price is significant.
• B)Underwriters provide a wider distribution of shares than would be possible with a rights offering.
• C)Rights must be exercised by their original owner or forfeited.
• D)Underwritten issues provide funds faster than rights offerings do.
• E)Investment bankers provide valuable advice.

---

Definitions:

Pinnacle

The highest or topmost point or level, often metaphorically used to denote the peak of achievement or quality.

Negative Terms

A concept in logic and philosophy describing expressions that negate a particular proposition or quality.

Essential Attributes

Fundamental qualities or features that define or distinguish the essence of a subject.

Negative Concept

An idea or category defined by the absence of certain attributes or qualities rather than the presence of them.