A public limited company proposes to increase its subscribed capital by offering new shares to existing shareholders. Such an issue is termed as ______.

Question

KollegeApply · Accepted Answer

A public limited company proposes to increase its subscribed capital by offering new shares to existing shareholders. Such an issue is termed as Rights Issue. Explanation: • A Rights Issue is when a company offers new shares to its existing shareholders in proportion to their current shareholding. • This allows shareholders to retain their ownership percentage in the company.

AChoose Your Answer