SIE practice questionmediumRights
Shareholders receiving rights can do which of the following?
- AConvert rights to corporate bonds
- BForce the company to buy back their shares
- CReceive an automatic dividend
- DPurchase new shares at a set price✓ Correct answer
Explanation
Why D — Purchase new shares at a set price
Rights allow the purchase of new shares at a preset price. They cannot demand buybacks, don't guarantee dividends, and are not convertible to bonds.
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