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

Public offerings and rights offerings are two ways that companies can raise capital by issuing securities. A public offering is a widely distributed offering of a security to the general public. It is typically done to gain access to a larger pool of capital in order to finance the business operations. Public offerings can be made through the stock exchange, direct trading with the public or through a prospectus. A rights offering is a way for a company to grant some existing shareholders the right to purchase new shares of the company at a discounted price before it is made available to the public. This type of offering is usually limited to existing shareholders, who have the right to make the purchase before new investors have the opportunity. Rights offerings are a way for a company to raise capital without having to go through the process of a public offering. In summary, the main difference between a public offering and a rights offering is that a public offering is a widely distributed offering of a security to the public and a rights offering is a way for a company to grant some existing shareholders the right to purchase new shares at a discounted price before it is made available to the public. Both public offerings and rights offerings can be used to raise capital, but they have different processes and advantages.

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

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