Which of the Following Statements Is FALSE

question 13

Multiple Choice

Which of the following statements is FALSE?

• A)In Australia, most SEOs are cash offers.
• B)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.
• C)Secondary shares are shares sold by existing shareholders, including the company's founder.
• D)In a rights offer, the firm offers the new shares only to existing shareholders.

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Definitions:

Injunction

A court order requiring an individual or entity to do or cease doing a specific action.

Restriction

A limitation or constraint placed on actions, activities, or movements, often found in legal contexts or agreements.

Employment Agreement

A contractual agreement between an employer and employee outlining the terms of employment.

Specialized Company

A business focused on a specific market niche, offering products or services that are not broadly offered by generalist companies.