Explain Why Most Corporations Issue Pre-Emptive Rights on Their New

question 47

Essay

Explain why most corporations issue pre-emptive rights on their new issues of stock when pre-emptive rights are generally not recognized by courts in Canada.

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Definitions:

Price

The amount of money or its equivalent paid or charged for a product or service, or the sum of values that consumers exchange for the benefits of having or using the product or service.

Apples

Commonly refers to the fruit of the apple tree, a popular and widely consumed fruit around the world, or could symbolize computer products from Apple Inc., depending on context.

Bananas

A curved, yellow fruit with a soft, sweet flesh, rich in potassium and commonly consumed worldwide.

Opportunity Cost

The lost benefits of the next best alternative when one alternative is chosen over another.