When an existing company offers its shares for sale to the existing shareholders, it is known as ___________.?

private placing
bonus issue
rights issue
offer for sale

LohaHridoy

5 views

2025-01-04 04:42

1 Answers

AhmedNazir

Answer: Option 3

When an existing company offers its shares for sale to the existing shareholders, it is known as rights issue. A rights issue is a way by which a listed company can raise additional capital. However, instead of going to the public, the company gives its existing shareholders the right to subscribe to newly issued shares in proportion to their existing holdings.

5 views Answered 2022-09-01 13:21

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