The Effect of a Rights Offering on a Stockholder Is

question 25

Multiple Choice

The effect of a rights offering on a stockholder is

• A)to increase his/her wealth.
• B)to increase his/her wealth only if the new stock is purchased.
• C)to decrease his/her wealth unless the stock is purchased.
• D)to decrease his/her wealth if nothing is done.

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Definitions:

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning techniques.

Graduated Exposure

In behavior therapy, a method in which a person suffering from a phobia or panic attacks is gradually taken into the feared situation or exposed to a traumatic memory until the anxiety subsides.

Systematic Desensitization

A behavioral therapy technique used to help individuals overcome phobias and anxiety disorders through gradual exposure to the feared object or situation.

Flooding

In behavior therapy, a form of exposure treatment in which the client is taken directly into a feared situation until his or her panic subsides.