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    Rights offerings to raise capital are seldom used in the US

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    Rights offerings are seldom used in the U.S. to raise equity capital, but they are often used in Europe. How might you explain that fact?

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    Solution Preview

    First of all, I am going to explain what are rights offerings. Rights offerings are the opportunities for the stockholders to buy additional shares of the stocks that they own at a discount price. This will enable the investors to get larger portion of their ...

    Solution Summary

    The solution discusses why rights offerings to raise capital are seldom used in the U.S., but they are in Europe.