SIE practice questionmediumRights
Which statement is most accurate about stock rights?
- AThey grant voting rights
- BThey are long-term, often lasting several years
- CThey are typically short-term instruments✓ Correct answer
- DThey are only issued for bonds
Explanation
Why C — They are typically short-term instruments
Rights are short-term instruments, usually lasting weeks. They do not grant voting rights, are not issued for bonds, and are much shorter in duration than warrants.
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