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Roy Owns 200 Shares of RTF Inc

Question 64

Multiple Choice

Roy owns 200 shares of RTF Inc. He has opted not to participate in the current rights offering by this company. As a result, Roy will most likely be subject to:


A) an oversubscription cost.
B) underpricing.
C) dilution.
D) the Green Shoe provision.
E) a locked-in period.

Correct Answer:

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