The Right of Common Shareholders to Protect Their Proportionate Interest

question 34

Multiple Choice

The right of common shareholders to protect their proportionate interest in a corporation by having the first opportunity to buy additional proportionate shares of common stock issued by the corporation is called a:

• A)Preemptive right.
• B)Proxy right.
• C)Right to call.
• D)Financial leverage.
• E)Voting right.