What Is the Primary Reason for a Reduction in Share

question 86

Multiple Choice

What is the primary reason for a reduction in share value after a successful rights issue? The new shares:

• A) have higher underwriting expenses.
• B) are offered at attractive prices.
• C) reduce the firm's return on equity.
• D) do not include voting rights.

---

Definitions:

Socially Constructed

A concept or perception that has been created and accepted by the people in a society through cultural and social practice.

Relative

Considered in relation or in proportion to something else; not absolute.

Crime

Acts or omissions that constitute offenses against the public, punishable by law, and involve harm to society or its norms.

Deviance

A rephrased definition for Deviant Behaviour, emphasizing actions or behaviors that depart from accepted norms in society, leading to various forms of reaction or sanction.