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What Is the Primary Reason Why Securities Are Sometimes Offered

Question 23

Multiple Choice

What is the primary reason why securities are sometimes offered through a rights offering?


A) To avoid corporate taxation of excessive profits
B) To provide additional income to the current shareholders
C) To assist current shareholders in maintaining their current proportional ownership position
D) To replace a regular stock dividend
E) To allow shareholders to avoid taxes by purchasing shares directly from the issuer

Correct Answer:

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