Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
Right shares are the shares which are issued to..........
Options:
Promoters of the company
Directors of the company
Existing shareholders of the company
New Subscribers of Share capital
Correct Answer:
Existing shareholders of the company
Explanation:
The Right Shares refers to those issues of shares which a company offers to their existing shareholders at a discounted price. The company's shareholders have rights to accept or reject the proposal and also there are minimum criteria for subscriptions of the share if the shareholder accepts the proposal.