The Pre-Emptive Right Enables a Stockholder to

question 101

Multiple Choice

The pre-emptive right enables a stockholder to

• A) receive the same amount of dividends on a percentage basis as the preferred stockholders.
• B) receive cash dividends before other classes of stock without the pre-emptive right.
• C) sell capital stock back to the corporation at the option of the stockholder.
• D) none of these answers are correct.

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