The distribution of extra shares by a company to all existing shareholders is called a:

Question

Quizplus · Accepted Answer

A rights issue is a way for a company to raise capital by offering existing shareholders the right to buy additional shares at a discounted price. This is a form of distribution of extra shares to all existing shareholders, making it the correct answer. A new float refers to the process of a company making its shares available for trading on a public market for the first time, while a private placement involves the sale of shares to a select group of investors. A secondary float is a term used to describe the sale of additional shares by an already publicly traded company.

The Distribution of Extra Shares by a Company to All