Which of the following statements is INCORRECT?

Select one:

a.

In making a rights issue, the offering firm is only required to send a memorandum of information to its shareholders.

b.

That shareholders can trade their shares could help discipline managers of the firms.

c.

When a corporation cannot satisfy its obligation to pay what it owes, its shareholders do not have to make up the shortfall out of their own wealth.

d.

Economies with more knowledge and intangible assets tend to have market-based financial systems.

e.

To track the S&P500, investors could buy a S&P500 index fund.