Carrie owns a lot of stocks in the Roan Hill Corporation. Based on recent developments, she is thinking about exercising her preemptive rights. This means that Roan Hill has decided to issue more shares of its common stock.

Question

Quizplus · Accepted Answer

Preemptive rights allow existing shareholders to maintain their proportional ownership in a company by purchasing new shares before they are offered to the public. This typically occurs when a company issues more shares of its common stock.

Carrie Owns a Lot of Stocks in the Roan Hill