Question: What is the primary reason why securities are sometimes offered through a rights offering? Multiple Choice To allow shareholders to avoid taxes by purchasing shares

What is the primary reason why securities are sometimes offered through a rights offering?

Multiple Choice

  • To allow shareholders to avoid taxes by purchasing shares directly from the issuer
  • To replace a regular stock dividend
  • To avoid corporate taxation of excessive profits
  • To provide additional income to the current shareholders
  • To enable current shareholders to maintain their current proportions of ownership

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