If a shareholder or an investor wants to acquire a new share of stock under a rights issue,he/she must:
A)buy call options on the stock.
B)acquire the appropriate number of rights per share and subscription price per share and submit them to the subscription agent.
C)acquire the correct number of rights per share and submit them to the subscription agent.
D)register his order with the NYSE.

Question

Quizplus · Accepted Answer

To acquire a new share of stock under a rights issue, the shareholder or investor must acquire the appropriate number of rights per share and subscription price per share and submit them to the subscription agent. Option A (buying call options) would not be applicable in this scenario, and option C (acquiring the correct number of rights per share without specifying the subscription price) is incomplete. Option D (registering the order with the NYSE) is also not required for acquiring a new share under a rights issue.

If a Shareholder or an Investor Wants to Acquire a New