A shareholder receives rights from a company through direct ownership in shares.

CSI CSC2 Question Answer

A shareholder receives rights from a company through direct ownership in shares. Not expecting to exercise them, she sells the rights on the relevant exchange. What is her capital gain?

The sale price less the exercise price of the rights.

The current share price less the exercise price of the rights.

The sale price of the rights.

The current price of the shares less the sale price of the rights.

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Update on: Jul 6, 2026
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A shareholder receives rights from a company through direct ownership in shares.

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