If You Own 500 Shares (2% of a Corporation's Stock)

question 46

Multiple Choice

If you own 500 shares (2% of a corporation's stock) and the corporation issues 15,000 new shares, how many total shares will you have after exercising your preemptive rights?

• A) 500
• B) 300
• C) 800
• D) 0
• E) 600

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Definitions:

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Early Twentieth Century

A period extending from the year 1901 to 1940, marked by significant technological, cultural, and political changes worldwide.