The offer of new shares to existing shareholders at a discount on market price, in proportion to the amount of their current holding, is known as:

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The offer of new shares to existing shareholders at a discount on market price, in proportion to the amount of their current holding is known as a rights issue. Option A refers to the right to buy shares at a set price, while option C refers to the issuance of additional shares to existing shareholders for free. Option D refers to the issuance of shares with preferential treatment over other classes of shares.

The Offer of New Shares to Existing Shareholders at a Discount