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Accountancy (Phase -I & II) Bonus and Right issue

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Right shares are issued to ………………….. share holders

existing

future

None of these

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Explanation:

A rights offering (rights issue) is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings. These are considered to be a type of option since it gives a company's stockholders the right, but not the obligation, to purchase additional shares in the company.