The right for existing owners to maintain their ownership share by purchasing sufficient shares to keep their percentage share of the firm is called:
A) stock option
B) stock warrant
C) preemptive right
D) participating stock
E) paid-in-kind preferred stock

Question

Quizplus · Accepted Answer

Preemptive right gives existing owners the right to maintain their ownership share by purchasing sufficient shares to keep their percentage share of the firm.

The Right for Existing Owners to Maintain Their Ownership Share