Which of the following is not a characteristic of a right?
A) Rights generally have short maturities consisting of a few weeks to three months.
B) Rights have certificates mailed to shareholders on the record date.
C) Rights are usually transferable.
D) The subscription price for a right is generally higher than the current market price.

Question

Quizplus · Accepted Answer

The subscription price for a right is typically set below the current market price to entice existing shareholders to purchase additional shares, making choice D incorrect as it states the opposite.

Which of the Following Is Not a Characteristic of a Right