Richardson Marina has 18 000 ordinary shares outstanding that were sold to the general public last year.The firm has just decided to issue an additional 6000 ordinary shares and has also decided to make the shares available to the firm's current shareholders before making any offer of these shares to the general public.Which one of the following terms best applies to this offer?

Question

Quizplus · Accepted Answer

The offer described in the scenario is a rights offer, as the company is making the new shares available to its current shareholders before offering them to the general public. This type of offer is also known as a rights issue or rights offering.

Richardson Marina Has 18 000 Ordinary Shares Outstanding That Were