A Pre-Emptive Right Refers to the Right of Existing Shareholders

question 30

True/False

A pre-emptive right refers to the right of existing shareholders to sue management in order to head off potential actions by management that would adversely affect the price of the stock.

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Definitions:

Variance

Variance is a measure of the dispersion of a set of data points from their mean, indicating how spread out the data points are.

Geometric Mean

A type of mean or average which indicates the central tendency of a set of numbers by using the product of their values.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit.

Geometric Mean

A type of mean or average, which indicates the central tendency of a set of numbers by using the product of their values and is particularly useful for proportional growth rates.