When Securities Are Issued Under a Rights Issue

question 21

Multiple Choice

When securities are issued under a rights issue:

• A) existing shareholders have the opportunity to expand their holdings.
• B) shares are offered to the public at a discount.
• C) the existing shares will increase in price.
• D) current shareholders have the right to resell their stock to the issuer.

---

Definitions:

Canada

A country located in the northern part of North America, known for its vast landscapes, multicultural diversity, and being one of the world's most developed countries.

Habituation

The process of becoming accustomed to a stimulus over time, leading to a decrease in response.

Reflexes

Built-in responses to certain stimuli that neonates need to ensure survival in their new world.

Temperament

A person’s behavioral style or characteristic way of responding to the environment.