A Rights Issue Is

question 46

Multiple Choice

A rights issue is:

• A)the issue of new shares to existing shareholders in proportion to their current holdings
• B)the right to subscribe to shares at a price and time that are predetermined
• C)an issue of shares where the shareholder has the right to decide whether the shares are classified as debt or equity
• D)none of the options is true

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Definitions:

Mid-ocean Ridge

An underwater mountain range, formed by plate tectonics, that stretches across the ocean floor, marking sites where new oceanic crust is created by volcanic activity.

Linear Island Chain

A sequence of islands that form in a straight line, often over a volcanic hot spot, as a tectonic plate moves over it.

Fracture Zone

An area of the ocean floor where tectonic plates have fractured, leading to seismic activity and the formation of geological structures.

Oceanic Trench

Deep, narrow depressions in the ocean floor, formed by subduction zones where one tectonic plate is forced under another.