The selling of new shares to exist shareholders is referred to as?

Assessment: JAMB UTME - Commerce - 2007 Subject: Commerce

Question 1 Report

The selling of new shares to exist shareholders is referred to as?
Answer Details
The selling of new shares to existing shareholders is referred to as a "rights issue". This means that the current shareholders are given the right to buy new shares in proportion to the number of shares they already own. This is often done by companies as a way of raising additional capital without going through the process of a public issue, which involves selling shares to the general public.
Read lesson note on Occupation (JAMB)
Read lesson note on Stock Exchange (JAMB)
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