What is the capital raising process referred to in the situation where an investor has been offered the option of buying a number of shares related to the size of his existing holding?

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The capital raising process referred to in this situation is known as a rights issue. In a rights issue, existing shareholders are given the option to buy additional shares in proportion to their existing holding. This allows the company to raise additional capital while also giving existing shareholders the opportunity to maintain their proportional ownership in the company. A share purchase plan is a different type of offer where shareholders are given the option to purchase a set number of shares at a discount. A placement is when new shares are issued to institutional investors, while a dividend reinvestment plan allows shareholders to use their dividends to purchase additional shares.

What Is the Capital Raising Process Referred to in the Situation