SIE practice questionmediumRights
Rights are typically issued to existing shareholders in order to:
- AGrant them additional board seats.
- BForce them to sell shares at par value.
- CEnable them to buy new shares at a discount before outsiders.✓ Correct answer
- DMake them liable for company debts.
Explanation
Why C — Enable them to buy new shares at a discount before outsiders.
Shareholders can buy new shares at a set price to preserve proportional ownership. The other options are not features of rights.
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