If a shareholder or an investor wants to acquire a new share of stock under a rights issue, he/she must:
A) Buy call options on the stock
B) Acquire the appropriate number of rights per share and subscription price per share and submit them to the subscription agent
C) Acquire the correct number of rights per share and submit them to the subscription agent
D) Any of the above

Question

Quizplus · Accepted Answer

To acquire a new share under a rights issue, the investor must acquire the appropriate number of rights and pay the subscription price, then submit them to the subscription agent.

If a Shareholder or an Investor Wants to Acquire a New