A public issue of securities which are first offered to existing shareholders is best defined as a(n):

Question

Quizplus · Accepted Answer

A rights offer is when a company offers new shares to its existing shareholders before offering them to the general public. This is different from a general cash offer or general offer where the securities are offered to the public without first being offered to existing shareholders. An IPO, or initial public offering, is when a company goes public for the first time by offering shares to the public. A private placement is when securities are sold to a small group of investors, typically institutions, without being offered to the public. Therefore, the correct choice is B.

A Public Issue of Securities Which Are First Offered to Existing