Which One of the Following Statements Is True Concerning a Rights

Multiple Choice

Which one of the following statements is true concerning a rights offering?

A) The subscription price is generally greater than the market price.
B) The subscription price must be greater than the ex-rights price.
C) The subscription price is generally less than the market price.
D) The ex-rights price is generally higher than the rights-attached price.
E) The market price tends to increase on the ex-rights date.