The Articles of Incorporation Can Provide That Existing Shareholders May

question 59

Multiple Choice

The articles of incorporation can provide that existing shareholders may buy new issues of stock in the same proportion as their current holdings.This is done to allow the current stockholders to keep the same voting and dividend rights they had before the new issue.This right is known as a right of:

• A) redemption
• B) ratification
• C) preemption
• D) first refusal
• E) buy-sell

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Definitions:

Organ System

A group of organs that work together to perform one or more functions in the body, such as the digestive system or respiratory system.

Crackles

A type of abnormal lung sound heard through a stethoscope, often resembling the sound of hair being rubbed together, indicative of fluid in the air spaces.

Neck Vein Distention

The swelling or protruding of neck veins, often indicative of increased venous pressure or heart conditions.

Diuretic

A type of medication or substance that promotes the production and excretion of urine, often used to treat high blood pressure and fluid retention.