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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.
  • 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 favorable terms
Correct Answer: Option D
Explanation:
A rights issue is an offer by a company to its existing shareholders to purchase additional shares, usually at a favourable price and in proportion to their existing holdings. It allows the company to raise additional capital while giving existing shareholders the opportunity to maintain their ownership proportion.

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