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Rights issue means the

Rights issue means the
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Issue of shares to the directors of a company on favourable terms
  • B Issue of shares by a company only to the founders of the company
  • C Right of shareholders to vote on any issue
  • D Issue of shares to shareholders on favourable terms
Correct Answer: Option D
Explanation:
A rights issue is an offer by a company to its existing shareholders to purchase additional shares, usually on favourable terms and in proportion to their existing holdings. It gives existing shareholders an opportunity to maintain their ownership interest in the company.

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