Each share of common stock provides the investor with a ________ right that offers the investor the first right to purchase any new shares of common stock the firm decides to issue. This allows common stockholders to maintain a proportional share of ownership in the company.

Question

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The term being described is the preemptive right, which is a right given to common stockholders to purchase new shares of common stock before they are offered to the public. This allows current stockholders to maintain their proportionate share of ownership in the company.

Each Share of Common Stock Provides the Investor with a ________