Q242
The method of raising equity capital from existing members by offering securities on pro rata basis is referred to as __________.
A.
Public issue
B.
Right Issue
AnswerC.
Private placement
D.
Bought-Out-Deal
Answer: Option B
Solution
Answer: Option B
Solution:
The method of raising equity capital from existing members by offering securities on pro rata basis is referred to as Right Issue. A rights issue is an invitation to existing shareholders to purchase additional new shares in the company.