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. 

×