The pre-emptive right is the right to:
A) vote before preferred shareholders vote.
B) sell the stock back to the issuing company.
C) convert dividends into new shares of stock.
D) maintain proportional ownership when new shares are issued.

Question

Quizplus · Accepted Answer

The pre-emptive right allows existing shareholders to maintain their proportional ownership in a company when new shares are issued, ensuring they can buy additional shares before the company offers them to the public.

The Pre-Emptive Right Is the Right To