SIE Understanding Products and Their Risks Practice Question 4

Question: 4

Which of the following satisfies an anti-dilution provision?

Correct Answer: A

Explanation:

A: Rights preserve the right of first refusal so that a stockholder may purchase shares to maintain the same percentage of ownership. Choice B may be offered as an incentive to purchase stocks and bonds. Choices C and D are options that are not typically issued pursuant to an anti-dilution provision.

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