Canadian Securities Course (CSC) Practice Exam 2025 – The Comprehensive All-in-One Guide to Exam Success!

Question: 1 / 400

What type of privilege allows existing shareholders to buy shares proportionate to their ownership?

Stock split

Rights and warrants

Rights and warrants give existing shareholders the privilege to buy shares proportionate to their ownership. This is different from a stock split as a stock split involves the company issuing additional shares, while in rights and warrants, the existing shareholders have the right to purchase additional shares. Equity shares and preferred shares do not necessarily give existing shareholders this privilege, as the distribution of shares may be determined by other factors such as company performance or investor agreements. Therefore, option B is the correct answer.

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Equity share

Preferred shares

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