Rights issue is the

Assessment: WAEC SSCE - Commerce - 2011 (Objective) Subject: Commerce

Question 1 Report

Rights issue is the

Answer Details
A rights issue is a method used by companies to raise capital by offering existing shareholders the right to purchase additional shares at a discounted price. It is also known as a rights offering or subscription right. The purpose of a rights issue is to raise additional funds for the company while giving existing shareholders the opportunity to maintain their percentage ownership in the company or increase it by subscribing to the new shares. So, the correct option from the given choices is "shares offered to existing shareholders at a cheaper price".
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