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A Rights Issue Differs from a Bonus Issue of Shares

Question 9

Multiple Choice

A rights issue differs from a bonus issue of shares in that:


A) after a bonus issue there is a greater number of shares in existence, unlike rights.
B) shares that are cum-bonus are renounceable.
C) the purpose of a bonus issue for a company is not to raise more funding.
D) only listed companies have rights issues.

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