Asked by Erinn Whitlock on Apr 24, 2024
Verified
Rights that allow stockholders to maintain their proportionate ownership of a corporation are called:
A) proportionate rights.
B) cumulative rights.
C) preemptive rights.
D) Both a and b above
E) All of the above
Preemptive Rights
A stockholder’s right to maintain her proportionate ownership in a corporation. The stockholder has the right to buy a share of any newly issued stock that is proportionate to her fractional ownership of the company before the new issue. The right is not a matter of law but must be written into the corporation’s bylaws.
Proportionate Ownership
Ownership shares in a company or asset divided among investors in proportion to their investment.
- Pinpoint the determinants impacting the intrinsic value of a stock and the significance of fundamental analysis.
Verified Answer
Learning Objectives
- Pinpoint the determinants impacting the intrinsic value of a stock and the significance of fundamental analysis.
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