Which of the Following Statements Is False

question 11

Multiple Choice

Which of the following statements is false?

• A) In a rights offer, the firm offers the new shares only to existing shareholders.
• B) Secondary shares are shares sold by existing shareholders, including the company's founder.
• C) If a firm's management is concerned that its equity may be underpriced in the market, by using a rights offering the firm can continue to issue equity without imposing a loss on its current shareholders.
• D) In the United States most offers are rights offers.

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Definitions:

Soluble Chemical Composition

Describes substances that can be dissolved in a solvent, referring to the makeup of a compound in terms of its ability to dissolve in liquids.

Sorting

The process by which sediment grains are selected and separated according to their size by agents of erosion or deposition.

Size Range

The spectrum or distribution of sizes for particles, objects, or phenomena, from the smallest to the largest.

Clasts

Pieces of rock or mineral fragments that are broken off from their parent source and are used in the creation of sedimentary rocks through the process of lithification.