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A Rights Issue Can Be Contrasted to a Bonus Issue

Question 3

Multiple Choice

A rights issue can be contrasted to a bonus issue in that:


A) companies do not issue bonus shares to raise capital.
B) the right to receive bonus shares can be traded separately from the underlying share.
C) a bonus issue can dilute share ownership but a rights issue does not.
D) a rights issue only applies to companies listed on the stock exchange.

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