AFP
CTP · Question #6
(Topic 1) The right of stockholders to purchase, on a pro-rata basis, any new shares issued by the company is referred to as:
The correct answer is A. preemptive right. See the full explanation below for the reasoning.
Question
- (Topic 1)
The right of stockholders to purchase, on a pro-rata basis, any new shares issued by the company is referred to as:
Options
- Apreemptive right.
- Bright of first refusal.
- Cexisting ownership right.
- Dprevention of dilution right.
How the community answered
(66 responses)- A80% (53)
- B11% (7)
- C6% (4)
- D3% (2)
Community Discussion
No community discussion yet for this question.