Multiple Choice
"Preemptive rights" means that
A) existing shareholders can prevent management from issuing additional common stock.
B) common shareholders can "preempt" preferred shareholders for dividends.
C) existing shareholders are guaranteed an opportunity to retain their proportional share of ownership of the firm.
D) management can preempt the right of shareholders to receive dividends if earnings are down.
Correct Answer:
Verified
Correct Answer:
Verified
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