1. Shareholders who have rights are always:

   1. better off if they exercise the rights rather than selling them.

   2. better off if they sell their rights rather than exercising them.

   3. in the same financial position if they sell or if they exercise their rights.

   4. able to purchase one new share for each right they own.

   5. financially disadvantaged any time a rights offer is made, regardless of any action they take.