Which of the following statements is INCORRECT?

Select one:

a.

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

b.

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

c.

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

d.

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

e.

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.