Of the following common stock rights, which allows common stockholders to buy more shares of common stock in order to retain their pro-rata share of ownership in the company?
A) asset rights
B) preemptive rights
C) dividend rights
D) voting rights

Question

Quizplus · Accepted Answer

Preemptive rights allow common stockholders to buy more shares of common stock in order to maintain their proportional ownership in the company. Asset rights refer to the right to receive a portion of the company's assets in the event of liquidation, dividend rights refer to the right to receive dividends, and voting rights refer to the right to vote on corporate decisions.

Of the Following Common Stock Rights, Which Allows Common Stockholders