Franklin Minerals recently had a rights offering of 12,000 shares at an offer price of $17 a share. Isabelle is a shareholder who exercised her rights option by buying all of the rights to which she was entitled based on the number of shares she owns. Currently, there are six shareholders who have opted not to participate in the rights offering. Isabelle would like to purchase these unsubscribed shares. Which one of the following will allow her to do so?

Question

Quizplus · Accepted Answer

The oversubscription privilege allows existing shareholders who have already bought shares through a rights offering to purchase additional shares that were not subscribed to by other shareholders. This is relevant to Isabelle's situation, as she wants to buy the unsubscribed shares after exercising her own rights.

Franklin Minerals Recently Had a Rights Offering of 12,000 Shares