Stock that is sold through a rights issue:

Question

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A rights issue involves the sale of new shares to existing shareholders, with the number of shares offered and the price per share determined by the company. Therefore, the sale of stock through a rights issue is limited to existing shareholders, and not offered to the general investing public (A). The issuance of new shares can affect the market price of the company's shares, but the specifics depend on various factors such as the size of the rights issue, the demand for the new shares, and the overall market conditions (B). The shares can be sold on either a firm commitment or a best efforts basis, but this is not an essential characteristic of a rights issue (D).

Stock That Is Sold Through a Rights Issue