If current shareholders want to acquire one share of stock under a rights plan they must:

Question

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Under a rights plan, current shareholders must submit the number of rights required plus the subscription price to acquire one share of stock. Option A is incorrect because acquiring new shares with rights attached requires purchasing additional shares. Option B is incorrect because there is no registration fee associated with a rights plan. Option D is incorrect because the market price per share is not used in a rights plan. Option E is incorrect because exchanging current shares for new shares with rights attached will require additional steps and potentially result in a different number of shares owned.

If Current Shareholders Want to Acquire One Share of Stock