Arguments offered as explanations, with or without market evidence, as to why most U.S. equity issues are sold without rights include all of the following except:

a the underwritten offer price is generally set 48 hours prior to the offering while the rights price must be set much further in advance.

b underwriters buy at an agreed upon price and bear some risk of selling the issue.

c cash proceeds are available sooner in underwriting and the issue is available to a wider market.

d underwriters certify that the offering price is consistent with the true value of the issue.

e underwriters tend to increase the stock price through their sales efforts.