What is a rights issue?
- A An offer of new shares to existing shareholders, usually at a discount, in proportion to their holding
- B A bonus issue of free shares
- C A buyback of shares
- D A private placement to institutions
Answer
An offer of new shares to existing shareholders, usually at a discount, in proportion to their holding
It allows existing shareholders to avoid dilution, and the rights themselves are typically tradeable if they choose not to subscribe.





