WAEC Commerce 2017 Objective — Question 10
Question 10 of 50 from the West African Examinations Council (WAEC) Commerce 2017 Objective paper, with the correct answer and a full explanation.
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10. When a company sells shares to existing share-holder at preferential rates, this is
- A. A. right issueCorrect
- B. B. bonus issue
- C. C. private placing
- D. D. issue by introduction
Explanation
A right issue is the act of selling shares to existing shareholder to compensate them for undistributed profit.
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