A Non-Renounceable Rights Issue

question 22

Multiple Choice

A non-renounceable rights issue

• A)means that shareholders who do not take up the right to purchase shares can not transfer the right to somebody else
• B)means that directors can not make any announcement about the price being offered by the company that is attempting the takeover.
• C)means that the right to purchase the shares can be sold to somebody else privately
• D)means that the right to purchase the shares can be sold to somebody else but only in public via a stock exchange

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Definitions:

Portfolios

Collections of financial assets such as stocks, bonds, commodities, and cash, held by an investment company, hedge fund, financial institution, or individual.

Less Risky

Refers to investments or assets that have a lower potential for loss or less variability in returns.

Coefficient

A numerical or constant factor in an algebraic expression that represents the magnitude of some variable's effect.

Variation

The measure of the spread or dispersion of a set of data points or values in a dataset.