Which of the Following Statements Is FALSE

question 9

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:

Embarrassing Topics

Subjects that may cause discomfort, shame, or awkwardness when discussed, often due to personal or societal sensitivities.

Age

A measure of the length of time that a person or object has existed.

Level Of Education

A measure of the highest degree of formal schooling completed or the extent of academic achievement.

Causation

Refers to the relationship between cause and effect, where one action or event directly results in another.