The Right for Existing Owners to Maintain Their Ownership Share

question 25

Multiple Choice

The right for existing owners to maintain their ownership share by purchasing sufficient shares to keep their percentage share of the firm is called:

• A) stock option
• B) stock warrant
• C) preemptive right
• D) participating stock
• E) paid-in-kind preferred stock

---

Definitions:

Denominated

Refers to the currency in which a financial transaction or commodity is quoted or dealt with.

Currency

The system of money in general use in a particular country or economic system.

Importers

Businesses or individuals that buy goods or services from abroad for sale in their own country, contributing to cross-border trade dynamics.

Exporters

Companies or individuals that sell goods and services produced in one country to buyers in other countries.