If a Shareholder or Investor Wants to Acquire New Stock

question 10

Multiple Choice

If a shareholder or investor wants to acquire new stock under a rights plant they must:

• A) acquire new stock in the market to get a controlling fraction of shares to be eligible for rights.
• B) simply pay a registration fee and turn in the subscription price.
• C) acquire the correct rights per share desired, then turn the rights and the total subscription price into the subscription agent.
• D) acquire the correct rights and wait for the company to send you the stock.
• E) call their broker and sell some CBOE options to make any money.

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