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What is a rights issue?

  1. A An offer of new shares to existing shareholders, usually at a discount
  2. B A bonus issue of free shares
  3. C A buyback of shares from the market
  4. D The issue of preference shares to institutions
Answer

An offer of new shares to existing shareholders, usually at a discount

A rights issue raises capital while giving existing shareholders the opportunity to maintain their proportional holding and avoid dilution.

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