Shares that are offered to existing shareholders at a price is called

Shares that are offered to existing shareholders at a price is called

A

par

B

premium

C

right issue

Dbonus issue

Answer is C

A rights issue or rights offer 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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