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?
- AFutures
- BWarrants
- COptions
- DRights✓ Correct answer
Explanation
Why D — Rights
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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