In a rights offering,the shares are priced at a substantial discount to current market value,which ensures that the shareholders will either exercise the rights themselves or sell them to other investors.

Question

Quizplus · Accepted Answer

This is true. A rights offering typically allows existing shareholders the opportunity to buy additional shares at a discount to the current market price. This incentivizes shareholders to exercise their rights or sell them to other investors.

In a Rights Offering,the Shares Are Priced at a Substantial