Which of the following best defines the term rights offer?
A) A public issue of securities in which securities are first offered to existing shareholders. Also called a rights offering.
B) The purchase of securities from the issuing company by an investment banker for resale to the public.
C) A preliminary prospectus distributed to prospective investors in a new issue of securities.
D) The creation and sale of securities on public markets.
E) Legal document describing details of the issuing corporation and the proposed offering to potential investors.
Correct Answer:
Verified
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