A preemptive right is a provision in the corporate charter or by laws that gives common stockholders the right to purchase on a pro rata basis new issues of common stock.

Name: A preemptive right is a provision in the corporate charter or by laws that gives common stockholders the right to purchase on a pro rata basis new issues of common stock.
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Question

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A preemptive right gives common stockholders the right to purchase new issues of common stock before they are offered to the public, on a pro rata basis.

A Preemptive Right Is a Provision in the Corporate Charter