Question
Question 19 What is the price of a share following a rights issue called? Select the correct answer from the options listed below Ex-rights issue Ex-rights price Post-rights price Post-issue and rights price
Answer
4.1
(306 Votes)
Ian
Elite · Tutor for 8 years
Answer
[Ex-rights price]
Explanation
## Step1: To solve that question, we need to understand the concepts of rights issue and ex-rights price. A company decides a rights issue when it wants to raise capital from existing shareholders by issuing new shares proportionate to their existing holdings. The price of a share following a rights issue is referred to as ex-rights price.