If you own 800 shares (3% of a corporation's stock)and the corporation issues 10,000 new shares,how many of the new shares can your purchase under preemptive right?

Question

Quizplus · Accepted Answer

Preemptive right allows current shareholders to purchase new shares before they are made available to the public. The number of shares a shareholder can purchase is based on the percentage of the total shares they currently own. In this case, the corporation issued 10,000 new shares, which makes the total number of shares 10,800. Since the shareholder owns 3% or 24 shares of the original 800, they are entitled to purchase 3% or 300 of the new shares under preemptive right. Therefore, the correct answer is B.

If You Own 800 Shares (3% of a Corporation's Stock)and