BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ is a kind of issue in which stock is offered to an existing stockholder.
A
Private Placement
B
E-IPOS
C
Rights Issue
D
Offer for Sale
Explanation: 

Detailed explanation-1: -Rights Entitlement (RE) is the rights issued by the company to the existing shareholders to subscribe to the new shares / other securities that the shareholder of a company is eligible to apply for under the rights offer.

Detailed explanation-2: -A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. This type of issue gives existing shareholders securities called rights. With the rights, the shareholder can purchase new shares at a discount to the market price on a stated future date.

Detailed explanation-3: -A rights issue is an offering of rights to the existing shareholders of a company that gives them an opportunity to buy additional shares directly from the company at a discounted price rather than buying them in the secondary market.

Detailed explanation-4: -Public issue is made through a prospectus that contains each and every detail of the issue whereas the right issue is made through communication between the company and the existing members of the company.

Detailed explanation-5: -A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders.

There is 1 question to complete.