Tony currently owns 12,000 shares of GL Tools.He has just been notified that the firm is issuing additional shares of stock and that he is being given a chance to purchase some of these shares prior to the shares being offered to the general public.What is this type of an offer called?
A)best efforts offer
B)firm commitment offer
C)general cash offer
D)rights offer
E)priority offer

Question

Quizplus · Accepted Answer

This is a rights offer, where existing shareholders are given the chance to purchase additional shares before they are offered to the general public.

Tony Currently Owns 12,000 Shares of GL Tools