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SIE: Equity Securities
SIE practice questioneasyRights

Which of the following gives existing shareholders the opportunity to maintain their proportionate ownership in a company during a new stock issuance?

  1. AFutures
  2. BWarrants
  3. COptions
  4. DRights✓ Correct answer
Explanation

Why DRights

Rights allow existing shareholders to purchase new shares before the public, preserving ownership. Warrants, options, and futures do not confer this privilege.

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