Asked by Pablo Porcayo on May 01, 2024

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Preemptive rights allow a stockholder to:

A) share in profits first.
B) maintain a proportionate ownership interest in the corporation.
C) vote their shares at the annual meeting.
D) dispose or sell their stock without notice.

Proportionate Ownership

The percentage of ownership that an investor holds in a company, typically represented in terms of share ownership.

Preemptive Rights

The rights that allow existing shareholders to purchase additional shares before new shareholders can buy them, in order to maintain their proportionate ownership in the company.

  • Comprehend the principles and mathematical processes associated with preemptive rights and their role in enabling shareholders to preserve their proportional ownership in a corporation.
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ZK
Zybrea KnightMay 08, 2024
Final Answer :
B
Explanation :
Preemptive rights enable a shareholder to purchase additional shares in a company before the company offers them to the general public, allowing the shareholder to maintain their proportional ownership in the company. This does not directly relate to sharing in profits first, voting rights, or the ability to sell stock without notice.