What is Means by Rights of Companies
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A rights issue is an invitation to the existing shareholders to buy additional shares of the company at a discounted price within a specific time frame.
Step-by-step explanation:
A rights issue is a primary market offer to the existing shareholders to buy additional shares of the company on a pro-rata basis within a specified date at a discounted price than the current market price.
It is important to note that the rights issue offer is an invitation that provides an opportunity for existing shareholders to increase their shareholding. It is a right that a shareholder may or may not choose to exercise and not an obligation to buy the shares.
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