If Amanda owns 10% of the stock of Modern Co., she has the common law right to purchase a proportionate share of every new offering of stock by the corporation, unless this right is limited by the corporate charter or by state law.

Question

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Unless the right is denied or limited by the corporate charter or by state law, shareholders have the right to purchase a proportionate share of every new offering of stock by the corporation. If not, then shareholders have what is called "preemptive rights" to purchase a proportionate share of every new offering of stock by the corporation.

If Amanda Owns 10% of the Stock of Modern Co