This is a privilege given to existing stakeholders to subscribe to a new issue of shares on pro-rata basis-
This is a privilege given to existing stakeholders to subscribe to a new issue of shares on pro-rata basis-
Solution
✅ Correct Option: 1
A rights issue is a privilege given to existing shareholders to subscribe to a new issue of shares on a pro-rata basis (in proportion to their existing shareholding). This is a pre-emptive right to protect their ownership. Hence, the correct answer is Rights issue.
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