📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    âš¡ Azaadi sale - Celebrate Independence Day with Flat 55% Off On all courses! 13 to 17 Aug âš¡ Enroll Now

    Question

    When an existing company issues fresh shares, the

    existing shareholders get the priority to subscribe to these additional new shares, such shares are called?
    A Right shares Correct Answer Incorrect Answer
    B Preference shares Correct Answer Incorrect Answer
    C Equity shares Correct Answer Incorrect Answer
    D Bonus shares Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    A rights issue is an offer to the existing shareholders to purchase additional shares of the company at a discounted price. The rights issue is made in proportion to the existing holdings and is required to be subscribed within a specific period failing which the rights lapse.

    Practice Next
    ask-question

    Not sure which exam is best for you Talk to our expert

    Get My Free Call