The Grapevine Is Perceived by Most Employees as Being More

question 67

True/False

The grapevine is perceived by most employees as being more believable and reliable than formal communiqués issued by management.

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Definitions:

Rights Offering

A financial mechanism by which companies offer existing shareholders the right to buy additional shares directly from the company at a predetermined price, usually at a discount, before the shares are offered to the public.

Value Of A Right

In finance, the value associated with a right, such as a stock right, which is the value to buy additional shares at a discounted price.

Market Price

The current valuation at which an asset or service is available for sale or purchase in the marketplace.

New Equity Issue

The process of issuing new shares of stock to raise capital for a company.