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, a shareholder or investor must acquire the correct rights per share desired, then turn the rights and the total subscription price into the subscription agent. Option A is incorrect as it suggests acquiring shares in the market to be eligible for rights, which may not always be the case. Option B is incorrect as there may be additional requirements to fulfill besides paying a registration fee. Option D is incorrect as the company will not send stock automatically without the shareholder or investor submitting the required documents and payment. Option E is unrelated to acquiring new stock under a rights plan.

If a Shareholder or Investor Wants to Acquire New Stock