A Rights Issue Can Be Contrasted to a Bonus Issue

question 27

Multiple Choice

A rights issue can be contrasted to a bonus issue in that:

• A)companies do not issue bonus shares to raise capital.
• B)the right to receive bonus shares can be traded separately from the underlying share.
• C)a bonus issue can dilute share ownership but a rights issue does not.
• D)a rights issue only applies to companies listed on the stock exchange.

---

Definitions:

Gordon Allport

An influential psychologist recognized for his theory of personality that emphasized individuality and the positive aspects of human nature.

Recommendation

A suggestion or proposal given by someone based on their knowledge, experience, or understanding of a situation or product.

Source Traits

Fundamental personality characteristics that are considered inherent and stable over time, from which other traits arise.

Raymond Cattell

was a psychologist known for his work in personality theory, including the development of the 16 Personality Factor (16PF) questionnaire.