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Pre-emptive-rights

Pre-Emptive Rights


July 16, 2011 | Accounting

A stockholder's pre-emptive right refers to what?




Quiz Results
Answer Key #1 The right to serve on the board of directors
#2 The right to purchase treasury stock
#3 The right to vote for board members
#4 The right to maintain proportionate interest in the corporation

Correct Answer: # 4


Explanation:
The pre-emptive right is the right to purchase new shares of a company in proportion with one's existing ownership percentage.



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