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Benefits of Debentures

When an exist...

Question

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

A

Private placing

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B

Bonus issue

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C

Rights issue

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D

Offer for sale

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Solution

The correct option is C Rights issue
A rights issue is 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.

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