BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. In a rights offering, each shareholder receives the right to purchase a pro-rata allocation of additional shares at a specific price and within a specific period (usually 16 to 30 days).

Detailed explanation-2: -When an issue of shares or convertible securities is made by an issuer to its existing shareholders as on a particular date fixed by the issuer (i.e. record date), it is called a rights issue. The rights are offered in a particular ratio to the number of shares or convertible securities held as on the record date.

Detailed explanation-3: -Historically, an initial public offering, or IPO, has referred to the first time a company offers its shares of capital stock to the general public.

Detailed explanation-4: -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.