Which of the following is incorrect about rights issues?

Responses

Rights are issued to existing shareholders on a pro rata basis

Rights are issued to existing shareholders on a pro rata basis

The issue price discount determines how dilutive the rights issue is

The issue price discount determines how dilutive the rights issue is

In a rights issue, existing shareholders are given the right but not the obligation to buy shares at a discount to market price

In a rights issue, existing shareholders are given the right but not the obligation to buy shares at a discount to market price

Rights may be subscribed to$,$ ignored or sold to another party