Q. In the context of finance, ‘Rights Issue’ refers to:
Red Book
Red Book

[A] A public offering of shares to new investors at market price.

[B] Issuing bonds to raise capital for debt repayment.

[C] Allowing shareholders to purchase additional shares at a premium to the market price.

[D] Raising additional capital from existing shareholders

Answer: D
Notes:

Explanation – Rights Issue refers to a method by which a company raises additional capital by offering its existing shareholders the opportunity to purchase additional shares at a discounted price, in proportion to their current holdings.

Source: The Hindu

Blog
Academy
Community