Conrad owns shares in a private corporation that prints and sells newspapers.Conrad has the right to buy shares in proportion to the shares he already owns any time there is a new share offering by the company.What is the term for this right Conrad has?

Question

Quizplus · Accepted Answer

The right Conrad has is called a pre-emptive right, which allows existing shareholders the first opportunity to buy new shares in proportion to their current holdings before they are offered to the general public. This helps to protect the proportionate ownership and control of the company among existing shareholders.

Conrad Owns Shares in a Private Corporation That Prints and Sells