IIA
IIA-CFSA · Question #158
Although these rights do not always exist, if they do, shareholders are entitled to buy any new issue of stock in proportion to their holdings. If a person owns 5% of a corporation, then he or she…
The correct answer is B. Preemptive rights. See the full explanation below for the reasoning.
Question
Although these rights do not always exist, if they do, shareholders are entitled to buy any new issue of stock in proportion to their holdings. If a person owns 5% of a corporation, then he or she would have the right to buy 5% of newly issued shares. These are:
Options
- AProxy rights
- BPreemptive rights
- CInspection rights
- DLiquidation rights
How the community answered
(35 responses)- A9% (3)
- B77% (27)
- C3% (1)
- D11% (4)
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