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Alberto currently owns 2,500 shares of Southern Tools. He has just been notified that the company is issuing additional shares and he is being given a chance to purchase some of these shares prior to the shares being offered to the general public. What is this type of an offer called?

Respuesta :

Manetho

Answer:

Rights offer

Explanation:

Ans) Rights offer

Rights offering is the priority offer which the company gives to the existing shareholders while issuing additional shares so that the total value of equity with the existing shareholders does not get diluted. It is offered within a fixed time period in proportion to their existing shareholding.