• Which of the following statements regarding SEOs is most accurate?
• A.Secondary shares are new shares issued by the company.
• B.In a rights offer, the firm sells rights to new shareholders.
• C.Rights offers expose existing shareholders to underpricing.
• D.In a cash offer, the firm offers the new shares to existing shareholders.
• E.Today, investors become informed about the impending sale of stock by the news media, via a road show, or through the book-building process, so tombstones are purely ceremonial.