If shareholders have a pre-emptive right,they can do which of the following?

Question

Quizplus · Accepted Answer

A pre-emptive right allows existing shareholders to purchase additional shares of a new stock offering being issued by the same firm before it is offered to the public. This helps to maintain their proportional ownership in the company and avoid dilution of their stake. The other options listed, such as exchanging bonds for shares or receiving a reimbursement for losses, are not related to pre-emptive rights. Firing the CEO without board approval is not an action that can be taken by shareholders with pre-emptive rights.

If Shareholders Have a Pre-Emptive Right,they Can Do Which of the Following