Concept:A rights issue is a way for a company to raise more capital from its existing shareholders.
Explanation:In a rights issue, the company offers existing shareholders the right to purchase additional shares.
These shares are usually offered at a price below the current market value, making the terms favorable to shareholders.
The number of shares each shareholder can buy is often proportional to their existing holding.
This allows shareholders to maintain their ownership percentage without dilution.
It differs from shares issued to directors, founders, or the general public.
It also does not simply mean the right to vote on company issues.
Answer:D. issue of shares to shareholders on favorable terms.