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Pre-emptive-rights

Pre-Emptive Rights


July 16, 2011 | Accounting

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

Pick an answer:

The right to serve on the board of directors
The right to purchase treasury stock
The right to vote for board members
The right to maintain proportionate interest in the corporation

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Pre-Emptive Rights
By Finance Ocean

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

Pick an answer:

  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


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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