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    Question

    Rights shares are given only to those shareholders who

    own the company’s shares on ……….
    A Vesting date Correct Answer Incorrect Answer
    B Record date Correct Answer Incorrect Answer
    C Grant Date Correct Answer Incorrect Answer
    D Exercise date Correct Answer Incorrect Answer
    E Offer date Correct Answer Incorrect Answer

    Solution

    In a rights issue, a cut-off date is fixed known as “Record Date” Rights shares are given only to those shareholders who own the company’s shares on the record date.

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