What is the meaning of right issue?

Company offers new shares to its existing shareholders

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Securities are not issued to existing shareholders at all

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Company sells the securities to some selected institutions

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None of these

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Solution

The correct option is C Company offers new shares to its existing shareholders
A rights issue is a dividend of subscription rights to buy additional securities in a company made to the company's existing security holders. When the rights are for equity securities, such as shares, in a public company, it is a non-dilutive pro rata way to raise capital.

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यह केवल मौजूदा शेयरधारकों के लिए दिया जाने वाला शेयरों का प्रस्ताव है।
ये हस्तांतरणीय हैं, जो शेयरधारक को खुले बाजार में उन्हें बेचने की अनुमति देता है।
शेयरधारक राइट्स इश्यू में दिए जाने वाले शेयरों को खरीदने के लिए बाध्य होते हैं।

Is it possible for shareholders to sell parts of their shares to other shareholders?

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