A rights issue gives all existing shareholders the right to an additional number of shares in proportion to their current shareholding.

Name: A rights issue gives all existing shareholders the right to an additional number of shares in proportion to their current shareholding.
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Quizplus · Accepted Answer

This statement is true. In a rights issue, existing shareholders have the right to purchase additional shares in proportion to their current shareholding. This is often done to raise additional capital for the company.

A Rights Issue Gives All Existing Shareholders the Right to an Additional