Asked by
Griffin Parriott
on Nov 21, 2024Verified
Under the common law, shareholders have ________ which give preference to shareholders to purchase shares of new issues of stock.
A) first rights
B) superior rights
C) preemptive rights
D) initial rights
E) shareholder's rights
Preemptive Rights
Rights that allow shareholders to purchase additional shares in a company before the company offers them to the public, protecting their ownership percentage from dilution.
- Grasp the concept of preemptive rights and their importance in maintaining shareholder equity.
Verified Answer
KM
Learning Objectives
- Grasp the concept of preemptive rights and their importance in maintaining shareholder equity.