Question

16. Martin is planning to sell his equipment's in open market, what value does this mean?


Book value
O Financial value
O Recovery value
O None of the above
​

Answer 1

Explanation:

rights issue means an existing investor can buy one extra share for every four shares already held by him/her. Usually the price at which the new shares are issued by way of rights issue is less than the prevailing market price of the stock, i.e. the shares are offered at a discount.