The privilege that allows (existing) shareholders to purchase unsubscribed shares in a rights offering at the subscription price is called the ______________ privilege.

Question

Quizplus · Accepted Answer

The oversubscription privilege allows existing shareholders to purchase unsubscribed shares in a rights offering at the subscription price, giving them the opportunity to buy more shares than their initial entitlement, should any shares remain unsubscribed.

The Privilege That Allows (Existing) Shareholders to Purchase Unsubscribed Shares