Economics · Corporate Finance

Which of the following distinction(s) is/are NOT correct between a public issue and a rights issue? (A) In a public issue, applications for shares are invited from the general public, and in a rights issue, the shares are offered to existing shareholders. (B) In a public issue there is no question of any over-subscription, and in a rights issue the shares may be under-subscribed or over-subscribed leading to pro-rata allotment. (C) The price of a public issue is generally less than the market price, and in a rights issue, the price is deliberately made less than the market price. (D) In a public issue, the communication of the issue is through a prospectus or advertisements, and in a rights issue the communication is between the company and the existing members of the company. Choose the most appropriate answer from the options given below: