A Decrease in the Quantity of Soybeans Produced Could Result

question 211

Multiple Choice

A decrease in the quantity of soybeans produced could result from

• A)elimination of farm subsidies to soybean producers.
• B)a decrease in the price of another farm crop that could be grown.
• C)a decrease in the cost of soybean production.
• D)an increase in consumer incomes.

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Definitions:

Unsubscribed Portion

That part of a new issue of securities not taken up or purchased by investors during an offering period.

Ex-Rights Date

The first trading day when a security is offered for sale in the marketplace without the entitlement to a previously declared rights offering.

Rights Offering

An option for existing shareholders to buy additional shares directly from the company at a pre-determined price, usually at a discount, as a way to raise capital.

Value of a Right

The theoretical value of a subscription right, which allows existing shareholders to purchase additional shares at a discount before the new shares are offered to the public.