Stockholders have preemptive rights because:

A) preemptive rights come with every stock purchase.
B) are required by law.
C) are written into the companies rules of operation (its charter, articles, or bylaws) .
D) preemptive rights prevent disproportional ownership.

Question

Yirgaalem Haile · Accepted Answer

Final Answer : C, Explanation :  Preemptive rights are typically written into a company's charter, articles, or bylaws. They are not required by law and do not automatically come with every stock purchase. Preemptive rights allow current shareholders to maintain their ownership percentage in the company by having the first option to purchase new shares before they are offered to the general public. This helps to prevent disproportional ownership.

Stockholders have preemptive rights because:

A) preemptive rights come with every stock purchase.
B) are required by law.
C) are written into the companies rules of operation (its charter, articles, or bylaws) .
D) preemptive rights prevent disproportional ownership.

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Learning Objectives

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Stockholders have preemptive rights because:A) preemptive rights come with every stock purchase.B) are required by law.C) are written into the companies rules of operation (its charter, articles, or bylaws) .D) preemptive rights prevent disproportional ownership.

Definitions

Learning Objectives

Learning Objectives

Related questions

Stockholders have preemptive rights because:

A) preemptive rights come with every stock purchase.
B) are required by law.
C) are written into the companies rules of operation (its charter, articles, or bylaws) .
D) preemptive rights prevent disproportional ownership.