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    Question

    'Rights Issue' of shares refers

    to: 
    A Issuing shares to the general public for the first time. Correct Answer Incorrect Answer
    B Issuing shares to existing shareholders at a discounted price in proportion to their current holdings. Correct Answer Incorrect Answer
    C Issuing shares to employees as a bonus. Correct Answer Incorrect Answer
    D Issuing shares only to institutional investors. Correct Answer Incorrect Answer
    E Buying back shares from the market. Correct Answer Incorrect Answer

    Solution

    A Rights Issue is a way for a company to raise additional capital while giving existing shareholders the first right to maintain their ownership percentage.

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