Cox Corporation has issued 2,000 shares of stock.Janis owns 500 shares.If the corporation issues an additional 500 shares,how many shares does Janis have the preemptive right to purchase?

Question

Quizplus · Accepted Answer

Janis originally owns 500 out of 2,000 shares, which is 25% of the company. To maintain her 25% ownership after the company issues an additional 500 shares (totaling 2,500 shares), she has the preemptive right to purchase 25% of the new 500 shares, which is 125 shares.

Cox Corporation Has Issued 2,000 Shares of Stock