The Preemptive Right Gives Shareholders the Right ________

question 38

Multiple Choice

The preemptive right gives shareholders the right ________.

• A) to caste one vote for each share owned at the annual meeting of the company
• B) to give up their vote to another party if they do not attend the annual meeting
• C) to maintain their proportionate ownership in the corporation when new common stock is issued
• D) to sell their share of stock at a premium in the event of liquidation

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