SIE Understanding Products and Their Risks Practice Question 38

Question: 38

Which of the following scenarios represents a stockholder fully exercising the Right of First Refusal?

A. Of 1,000,000 common shares issued, a shareholder owns 500,000 common shares and purchases 5,000 shares of a new issue.

B. Of 1,000,000 common shares issued, a shareholder owns 500,000 common shares and purchases 5% of a new issue.

C. Of 1,000,000 common shares issued, a shareholder owns 500,000 common shares and purchases 50% of a new issue.

D. Of 1,000,000 common shares issued, a shareholder owns 500,000 common shares and purchases 500,000 shares of a new issue.