Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

preemptive rights allow stockholders to acquire ______ before the gener…

Question

preemptive rights allow stockholders to acquire ______ before the general public.
○ new stock
○ preexisting shares
○ company assets
○ dividends

Explanation:

Brief Explanations

Preemptive rights in business (specifically finance) refer to the right of existing stockholders to purchase new shares issued by a company before they are offered to the general public. This is to maintain their proportional ownership. Preexisting shares are already owned, company assets are not acquired via preemptive rights in this context, and dividends are distributions of profits, not acquired via preemptive rights. So the correct option is new stock.

Answer:

A. new stock