A rights issue is also called a(an)
A)private placement.
B)shelf registration.
C)initial public offering (IPO).
D)privileged subscription.

Question

Quizplus · Accepted Answer

A rights issue is also known as a privileged subscription, as existing shareholders are given the privilege to subscribe to new shares before they are offered to the general public. A private placement involves the sale of securities to a small group of institutional investors, while a shelf registration allows a company to register securities with the SEC for future public sale without immediately offering them to the market. An IPO is a company's first public offering of securities to the general public.

A Rights Issue Is Also Called A(an)