If a Shareholder or an Investor Wants to Acquire a New

question 29

Multiple Choice

If a shareholder or an investor wants to acquire a new share of stock under a rights issue,he/she must:

• A)buy call options on the stock.
• B)acquire the appropriate number of rights per share and subscription price per share and submit them to the subscription agent.
• C)acquire the correct number of rights per share and submit them to the subscription agent.
• D)register his order with the NYSE.

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Definitions:

Sold

The completed sale of goods or services from one party to another, transferring ownership.

Probability

A mathematical measure indicating the likelihood or chance of a specific event occurring, ranging from 0 (impossible) to 1 (certain).

Quarter

A period of three months used in financial and business sectors for reporting, forecasting, and dividing the fiscal year.

Tails

The extreme ends of a distribution, representing outcomes that are far from the central peak of the distribution.