"Preemptive Rights" Means That

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 common stock 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.