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As an Existing Shareholder You Have the Right to Participate

Question 251

Multiple Choice

As an existing shareholder you have the right to participate in a privileged subscription. This gives you the ability to do each of the following EXCEPT:


A) Maintain your percentage ownership in the firm.
B) Sell some of your rights to another party.
C) Receive the rights even after you have sold the stock, provided you sell before the holder-of-record date.
D) Exercise your rights and then sell the new stock you just acquired.
E) Incur a loss of wealth if you let your rights expire unexercised.

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