New NABARD Grade A : How to prepare ESI for Prelims & Mains- Sources & Strategy
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Question

Rights issue is an offer of new additional securities by a listed company to its___________

A Existing shareholders at zero cost basis Correct Answer Incorrect Answer
B Existing majority shareholders on pre-determined basis Correct Answer Incorrect Answer
C Existing shareholders on premium price Correct Answer Incorrect Answer
D Existing shareholders on a discounted price Correct Answer Incorrect Answer
E Existing shareholders on first-come-first-serve basis Correct Answer Incorrect Answer

Solution

Under Rights issue a company first offers additional shares to its existing shareholders at a discounted price.

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