Richardson Marina has 18,000 shares of stock outstanding that were sold to the general public last year.The firm has just decided to issue an additional 6,000 shares of common stock and has also decided to make the shares available to the firm's current shareholders before making any offer of these shares to the general public.Which one of the following terms best applies to this offer?

Question

Quizplus · Accepted Answer

This is a rights offer, which is a type of offering that gives existing shareholders the right to purchase newly issued shares before they are offered to the general public.

Richardson Marina Has 18,000 Shares of Stock Outstanding That Were