Which of the following statements concerning a rights issue are correct?

(1) The new shares are normally issued at a discount to the existing price

(2) There will be no change in shareholder wealth

(3) The main purpose of a rights issue is to raise finance

(4) The new shares must be issued to the existing shareholders

A 1, 2 and 3 only

B 2, 3 and 4 only

C 1, 3 and 4 only

D 1, 2 and 4 only