Start learning →

Why does a rights issue leave control of the company unchanged?

AHolders keep their share
BRights carry no votes
COnly debt is raised
DDirectors hold the stock
Answer & Solution
Correct answer: A. Holders keep their share
Each holder gets the first chance to buy in proportion, so there is no change of control.
Practise this question with Quill — CA Inter →

Keep practising Sources of Finance

Browse all Sources of Finance questions for CA Inter, or explore more Financial Management topics.

Start a Sources of Finance lesson →
Related questions