Question

A company in which your client owns stock is about to make a rights offering. The client informs you that he does not plan on subscribing to the offer. You would tell the client that his proportionate ownership interest in the company would: ___________

Answer 1

Answer:

decrease

Explanation:

According to my research on different investment terminology, I can say that based on the information provided within the question you would tell the client that his proportionate ownership interest in the company would decrease. This is because if other people buy shares of the company the overall amount of shares sold increases and your percentage owned goes decreasing as more people buy.

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