Asked by
Grant Jackson
on Oct 15, 2024
Verified
A preemptive right means shareholders can purchase their proportional share of common stock issued later by the corporation.
Preemptive Right
A shareholder's right to maintain their proportional ownership in a company by purchasing additional shares before they are offered to the public.
Common Stock
A form of corporate equity ownership, a type of security representing an ownership stake in a corporation.
- Identify the categories of stock along with their distinct rights, encompassing both preferred and common stock.
Verified Answer
SB
Learning Objectives
- Identify the categories of stock along with their distinct rights, encompassing both preferred and common stock.