If a shareholder or investor wants to acquire new stock under a rights plant they must:

Question

Quizplus · Accepted Answer

In order to acquire new stock under a rights plan, shareholders or investors must acquire the correct rights per share desired and then turn the rights and the total subscription price into the subscription agent. This is the process for exercising the rights and purchasing the new shares at a discounted price. Option A is not necessary as the rights plan allows shareholders to acquire new shares directly through the plan without needing a controlling fraction of shares. Option B is not a typical requirement for acquiring new shares under a rights plan. Option D is not accurate as shareholders must take action in order to exercise their rights and purchase new shares.

If a Shareholder or Investor Wants to Acquire New Stock