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    Question

    A 'Rights Issue' of shares is an offer made

    to:
    A The general public. Correct Answer Incorrect Answer
    B The employees of the company. Correct Answer Incorrect Answer
    C The existing shareholders of the company. Correct Answer Incorrect Answer
    D Financial institutions only. Correct Answer Incorrect Answer

    Solution

    A Rights Issue is a method for a company to raise additional capital by offering new shares to its existing shareholders in proportion to their current holdings. This allows shareholders to maintain their proportional ownership in the company.

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