Concept:A rights issue allows existing shareholders to buy new shares at a price lower than the market price.
Explanation:When a company needs more capital, it may offer new shares first to its current shareholders.
This offer is made in proportion to the number of shares they already own.
The price of these shares is usually set at a discount to the market price, making it a preferential price.
This method enables shareholders to keep their proportionate ownership and prevents dilution.
In a bonus issue, shares are given free of cost.
An offer for sale and a public offer are open to the public, not only to existing shareholders.
Therefore, the correct term is rights issue.
Answer:D. rights issue