Which of the Following Statements Is FALSE

Which of the following statements is FALSE?

A) In a rights offer,the firm offers the new shares only to existing shareholders.
B) Secondary shares are shares sold by existing shareholders,including the company's founder.
C) If a firm's management is concerned that its equity may be underpriced in the market,by using a rights offering the firm can continue to issue equity without imposing a loss on its current shareholders.
D) In the United States,most offers are rights offers.

Correct Answer:

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