In a rights offering, shareholders who subscribe make payment to the:_____.
a. stand-by underwriter
b. rights agent for the issuer
c. brokerage firm
d. trustee

Respuesta :

In a rights offering, shareholders who subscribe make payment to the rights agent for the issuer.

A corporation tries to sell extra shares to its current shareholders directly through a rights offering. To handle the mechanics of the offer, the corporation engages a "rights agent," usually a commercial bank.

What is shareholders?

  • An individual or legal entity (such as another corporation, a body politic, a trust, or a partnership) that is registered by the corporation as the legal owner of shares of the share capital of a public or private corporation is referred to as a shareholder (also known as a stockholder in the United States).
  • Members of a corporation are sometimes referred to as shareholders.
  • When a person or legal entity's name and other information are entered in a corporation's register of shareholders or members, that person or legal entity becomes a shareholder in the corporation.

What functions do shareholders perform?

  • The shareholders are the business's owners and supply funding in exchange for prospective dividend payments over the enterprise's existence.

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