When a company sells the right to buy a certain number of shares in the company at a pre- determined price at or up to some fixed time in the future,that right is known as a:

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The right described in the question is known as a call option. A bonus issue is when a company issues free additional shares to its existing shareholders. Redeemable preference shares are a type of share that can be bought back by the company at a certain price. A private issue refers to the process of offering shares to a select group of individuals or institutions, rather than the general public.

When a Company Sells the Right to Buy a Certain