Which of the Statements Below Is FALSE

question 62

Multiple Choice

Which of the statements below is FALSE?

• A)If an investor purchases 20% of the initial issue of the company,the investor then owns 20% of the company,given the one vote-one share norm.
• B)After an initial offering,the company can sell more shares to the public at a later date.If the investor who originally purchased 20% does not purchase 20% of the subsequent issue,his or her ownership is diluted below 20%.
• C)A preemptive right enables one to maintain one's proportional level of ownership.
• D)A preemptive right is never particularly valuable to shareholders with large ownership percentages.

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Definitions:

Narcissistic Trait

A personality characteristic involving an inflated sense of self-importance, need for admiration, and lack of empathy for others.

Oedipus Complex

The Oedipus complex is a concept in psychoanalytic theory referring to a child's unconscious sexual desire for the opposite-sex parent and jealousy and rivalry toward the same-sex parent.

Reality Principle

A psychoanalytic concept that refers to the ability of the ego to address the demands of the environment in a realistic manner, balancing the id's desires with the external world's constraints.

Unconscious Wishes

Desires or longings that an individual is not aware of but that influence emotions and behavior, according to psychoanalytic theory.