Examlex
Match each description with the item below.
-William Harrison "Jack" Dempsey
Preemptive Rights
A stockholder’s right to maintain her proportionate ownership in a corporation. The stockholder has the right to buy a share of any newly issued stock that is proportionate to her fractional ownership of the company before the new issue. The right is not a matter of law but must be written into the corporation’s bylaws.
Proportionate Ownership
Ownership shares in a company or asset divided among investors in proportion to their investment.
Efficient Markets
A financial market hypothesis suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher-than-average returns.
Informed Markets
Markets where all participants have access to all relevant information, leading to more efficient price determination.
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