Which of the Following Statements Is FALSE

Multiple Choice

Which of the following statements is FALSE?

A) In a rights offer, a firm offers the new shares only to existing shareholders.
B) Secondary shares are shares sold by existing shareholders, including the company's founder.
C) If a firm's management is concerned that its equity may be underpriced in the market, by using a rights offering, the firm can continue to issue equity without imposing a loss on its current shareholders.
D) In the United States, most offers are rights offers.