Assuming a price greater than zero, it is virtually impossible to overprice a rights offer.

Name: Assuming a price greater than zero, it is virtually impossible to overprice a rights offer.
Brand: Quizplus
Rating: 5.0 (54 reviews)

Question

Quizplus · Accepted Answer

A rights offer, like any financial instrument, can be overpriced if the subscription price set for the new shares is significantly higher than the market value of the shares, making it unattractive to existing shareholders and potentially leading to a poor uptake of the offer.

Assuming a Price Greater Than Zero, It Is Virtually Impossible