Franklin Minerals recently had a rights offering of 1,000 shares at an offer price of $10 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 the 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 via a rights offering to purchase additional shares that were not subscribed to by other shareholders. This would enable Isabelle to buy the unsubscribed shares.

Franklin Minerals Recently Had a Rights Offering of 1,000 Shares