हिंदी

Explain the following term/concept: Rights Issues - Secretarial Practice

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प्रश्न

Explain the following term/concept:

Rights Issues

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उत्तर

  1. A business can issue shares to its current equity owners in proportion to their current shareholding when it wishes to obtain more funds. This type of share issuance is known as a rights issue.
  2. Rights shares are offered to existing shareholders at a price lower than the current market value. If a shareholder does not respond within the given time period, it is considered that they are not interested in the offer. In such a case, the company is free to sell those unclaimed shares to new investors.
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