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Briefly explain the concept of preemption.
Paid-In Capital
Funds raised by a company through the issuance of securities, reflecting the total amount of invested capital that shareholders have contributed directly.
Retained Earnings
Profits that a company keeps after dividends are paid, often reinvested into the business or used to pay off debt.
Preferred Stock
A type of stock that gives its holders preference over common stockholders in terms of dividends and claims on assets during liquidation.
Treasury Stock
Treasury stock is made up of shares that have been issued and subsequently bought back by the company that issued them, which decreases the number of shares available on the open market.
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