Q261
Shares issued to the existing share holders on a pre-emptive basis is __________.
A.
bonus shares
B.
right issue
AnswerC.
new issue
D.
secondary market
Answer: Option B
Solution
Answer: Option B
Solution:
Shares issued to the existing share holders on a pre-emptive basis is right issue. The pre-emptive right is also called subscription right or subscription privilege.