<p data-pm-slice="1 1 []">A rights issue is a method used by companies to raise additional capital by offering existing shareholders the right to purchase additional shares at a discounted price. <span style="font-family: Arial; font-size: 10pt;">rights issue, </span> This approach helps companies generate funds without resorting to external debt or other financing options that may dilute ownership significantly. Rights issues are commonly employed to finance expansion, reduce debt, or enhance a company's financial stability.