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Griffin Parriott
on Nov 21, 2024

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Under the common law, shareholders have ________ which give preference to shareholders to purchase shares of new issues of stock.

A) first rights
B) superior rights
C) preemptive rights
D) initial rights
E) shareholder's rights

Preemptive Rights

Rights that allow shareholders to purchase additional shares in a company before the company offers them to the public, protecting their ownership percentage from dilution.

  • Grasp the concept of preemptive rights and their importance in maintaining shareholder equity.
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KM
Kevontae McDonaldNov 25, 2024
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