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      Question

      An offer of new securities by a listed company to it-s

      existing shareholders on a pro-rata basis, is called -
      A Primary Issue Correct Answer Incorrect Answer
      B Secondary Issue Correct Answer Incorrect Answer
      C Rights Issue Correct Answer Incorrect Answer
      D Shareholders’ issue Correct Answer Incorrect Answer
      E Promoters’ issue Correct Answer Incorrect Answer

      Solution

      A rights issue is an offering of rights to a company's existing shareholders that entitles them to buy additional shares directly from the company in proportion to their existing holdings, within a fixed time period. 

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