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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