What is the difference between a public offering and a rights offering?

Public offering and rights offering are two different types of securities offerings used by companies in California to raise money for their business. In a public offering, a company sells securities to anyone who is willing to purchase them. This could include individual investors, financial institutions, and other institutions. The company sets a certain price for the securities, and the number of securities offered in the public offering can vary. In contrast, a rights offering is a type of offering that provides existing shareholders the right to purchase securities at a discounted price before they are offered to the public. These rights are often given in proportion to how much the shareholder already owns of the company, so shareholders with the largest ownership stakes will receive the most rights. The rights can then be sold to the public at a discounted rate. The main difference between public offerings and rights offerings is the number of buyers who can purchase the securities. With public offerings, securities can be sold to anyone who wants them, while in rights offerings, only existing shareholders are typically able to purchase securities at a discounted rate. Additionally, public offerings typically allow for more securities to be sold than rights offerings.

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What is the difference between a public offering and a rights offering?

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