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प्रश्न
Explain the following term/concept:
Rights Issues
स्पष्ट करा
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उत्तर
- 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.
- 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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