A rights issue is also called:
A) A private placement
B) Shelf registration
C) Initial public offering (IPO)
D) A privileged subscription

Question

Quizplus · Accepted Answer

A rights issue is also known as a privileged subscription because it offers existing shareholders the right to purchase additional shares in proportion to their current holdings before the new shares are available to the general public. A private placement is a sale of securities directly to a limited number of investors, while shelf registration allows a company to register securities with the SEC without selling them immediately. An IPO is the first sale of stock by a company to the public.

A Rights Issue Is Also Called