Pre-Emptive Rights Allow Shareholders To

question 92

Multiple Choice

Pre-emptive rights allow shareholders to:

• A)buy enough of a new securities offering to maintain their present proportional share of ownership
• B)buy an unlimited amount of the new issue at a discount
• C)pre-empt other stockholders from selling securities in a company
• D)none of the above

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Definitions:

Journal

A listing of business transactions in chronological order. The journal links on one page the debit and credit parts of transactions. Alternatively known as general journal.

Posting

The transferring, copying, or recording of information from a journal to a ledger.

Sliding

A term often used in various contexts to describe a gradual, steady movement or shift from one position or condition to another.

Accounting Cycle

A sequence of steps undertaken in a specific order by businesses to handle their financial transactions from their inception to their inclusion in the financial statements.