The Pre-Emptive Right of a Common Stockholder Is the Right

question 70

Multiple Choice

The pre-emptive right of a common stockholder is the right to

• A) share proportionately in corporate assets upon liquidation.
• B) share proportionately in any new issues of stock of the same class.
• C) receive cash dividends before they are distributed to preferred stockholders.
• D) exclude preferred stockholders from voting rights.

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