when a company sells shares to existing shareholders at preferential rate, this is
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Correct Answer: Option A
Explanation:
A rights issue is when shares are offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings. Rights are often transferable, allowing the holder to sell them in the open market.
A rights issue is when shares are offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings. Rights are often transferable, allowing the holder to sell them in the open market.