Question

The right of stockholders of firm that new shares must be offered to existing stockholders first, rather than new stock holders is classified as

a.

non-offered rights

b.

preemptive rights

c.

existing rights

d.

securitize rights

Answer: (b).preemptive rights

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Q. The right of stockholders of firm that new shares must be offered to existing stockholders first, rather than new stock holders is classified as

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