Examlex
Choose the correct statement.
Preemptive Rights
The rights that give existing shareholders the opportunity to buy additional shares of a company's new stock issue before the public, maintaining their percentage of ownership.
Retained Earnings
The portion of net income that is retained by the corporation rather than distributed to its owners as dividends, typically used for reinvestment in the business or paying down debt.
Stockholders' Equity
The remaining interest in a company's assets after all debts have been subtracted, indicating the owners' stake.
Stated Value
A nominal value assigned to no-par shares by the issuing company, distinct from market value.
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