Share Investment: “Right issue” is

The Right issue is..

            1. Issue of securities to a select group of persons

            2. Direct sale of securities from an unlisted company to the public for fixed price.

            3. When a listed company proposes to issue fresh securities to its existing shareholders

            4. When a listed company makes a fresh issue of securities

Answer:

            3. When a listed company proposes to issue fresh securities to its existing shareholders

Explanation:

Rights issue (RI) - When an issue of securities is made by an issuer to its shareholders existing as on a particular date fixed by the issuer (that is record date), it is called an rights issue. 

The rights are offered in a particular ratio to the number of securities held as on the record date.

 Src:http://investor.sebi.gov.in/

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