A Preemptive Right Is a Provision in the Corporate Charter

question 18

True/False

A preemptive right is a provision in the corporate charter or by laws that gives common stockholders the right to purchase on a pro rata basis new issues of common stock.

---

Definitions:

Vasa Vasorum

The small blood vessels that supply the walls of larger arteries and veins, providing them with oxygen and nutrients.

Tunica Interna

Also known as the intima, it is the innermost layer of a blood vessel, lining the lumen.

Tunica Intima

The innermost layer of a blood vessel, consisting of a thin layer of endothelial cells that line the lumen.

Tunica Externa

The outermost layer of a blood vessel, composed largely of connective tissues, which provides support and protection.