The Preemptive Right Is Designed to

question 50

Multiple Choice

The preemptive right is designed to

• A)allow management to diffuse stock ownership any voting power
• B)allow managers to preempt a stock offering if they do not like the terms of the deal
• C)allow existing shareholders the right to sell their existing shares before the new offer
• D)allow existing shareholders to buy shares of the new offering if they desire
• E)none of the options

---

Definitions:

Developing

The process of growing or causing something to grow or become larger or more advanced.

Agenda

A list or plan of items to be discussed or acted upon in a meeting or gathering.

Parliamentary Procedure

A set of rules and guidelines intended to maintain order, ensure justice, and facilitate the decision-making process within meetings of organized groups.

Rules Of Conduct

Prescribed guidelines designed to govern behavior in specific situations or organizations.