Which of the following statements is true about a renounceable rights issue?
A) Rights cannot be traded after the ex-rights date.
B) The price of shares will rise after the subscription date.
C) Shares trade ex-rights before the ex-rights date.
D) Rights have no value if the share price is above the subscription price on the subscription date.
E) The share price will fall on the ex-rights date.
Correct Answer:
Verified
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