"A privilege given to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company".
Identify the method of flotation from this statement.
"A privilege given to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company".
Identify the method of flotation from this statement.
Solution
✅ Correct Option: 2
A rights issue is a privilege offered to existing shareholders to subscribe to a new issue of shares as per the company's terms and conditions, usually in proportion to their existing holding. Hence the method of flotation is Rights Issue.
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