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WAEC Commerce 1998 Question 29

Question 29

Business Finance

An offer of new shares made to existing shareholders at a preferential price is called a

  1. A.bonus issue
  2. B.rights issue
  3. C.private placing
  4. D.debenture
  5. E.preference share
Show the answer and explanation

Answer: B (rights issue)

Explanation

A rights issue offers new shares to existing shareholders, usually at a reduced price.