The Pre-Emptive Right of a Common Stockholder Is the Right

question 14

Multiple Choice

The pre-emptive right of a common stockholder is the right to

• A) Share proportionately in corporate assets upon liquidation.
• B) Share proportionately in any new issues of stock of the same class.
• C) Receive cash dividends before they are distributed to preferred stockholders.
• D) Exclude preferred stockholders from voting rights.