JAMB Commerce 2022 Objective — Question 29

Question 29 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2022 Objective paper, with the correct answer and a full explanation.

29. Rights issue means the

A. (A) issue of shares to the directors of a company
B. (B) issue of shares by a company only to the founders
C. (C) right of shareholders to vote on any issue
D. (D) issue of shares to only existing shareholdersCorrect

Explanation

A rights issue is the issue of shares to existing shareholders, usually with some preferential treatment attached.

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