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WAEC Commerce 2020 Objective — Question 28

Question 28 of 50 from the West African Examinations Council (WAEC) Commerce 2020 Objective paper, with the correct answer and a full explanation.

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The issue of shares which allows existing shareholder's to buy shares at a preferential price is

  • A. an issue
  • B. offer for sale
  • C. public offer
  • D. rights issueCorrect

Explanation

When existing shareholders are given preference treatment, then it is a rights issue.

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