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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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