question archive A rights offering will probably fail a
A rights offering will probably fail a
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A rights offering will probably fail
a. if the new issue is small compared to the total ordinary shares outstanding. b. if the issue has shown price stability over the past year
c. if the stock is very widely held.
d. if the subscription price is close to the market price.
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a.) if the new issue is small compared to the total ordinary shares outstanding
- A rights offering gives shareholders rights to purchase additional new shares in the company. Shareholders may trade the rights on the market the same way they would ordinary shares until the date at which the new shares can be purchased.
