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 called a rights issue. A preference issue is when new shares are issued with preferential rights to dividends or other benefits, a bonus issue is when additional shares are issued to existing shareholders without any charge, and an option is a financial contract that gives the holder the right (but not the obligation) to buy or sell an underlying asset at a specified price within a certain time frame.

The Offer of New Shares to Existing Shareholders at a Discount