Management Notes

Reference Notes for Management

In a common stock rights offering the subscription price is generally:

In a common stock rights offering the subscription price is generally:

In a common stock rights offering the subscription price is generally:

  1. set equal to the current market price of the stock.
  2. set below the current market price of the stock.
  3. set above the current market price of the stock.
  4. set after the stock goes “ex-rights.”

Answer: b. set below the current market price of the stock.

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