SIE practice questioneasyRights
Shareholders are sometimes offered rights, which give them the ability to:
- AReceive extra dividends.
- BVote twice in annual meetings.
- CPurchase new shares before the public at a set price.✓ Correct answer
- DSell shares back to the company at any time.
Explanation
Why C — Purchase new shares before the public at a set price.
Rights let shareholders buy new shares before outsiders, protecting against dilution. They do not offer special voting, extra dividends, or a company buyback guarantee.
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