If you own 500 shares (2% of a corporation's stock)and the corporation issues 15,000 new shares,how many of the new shares can you purchase under preemptive right?

Question

Quizplus · Accepted Answer

Preemptive right allows existing shareholders to purchase additional shares before they are offered to the public. The number of new shares that can be purchased under preemptive right is equal to the percentage of ownership multiplied by the number of new shares issued. In this case, 2% of 15,000 is 300, so the shareholder can purchase 300 new shares.

If You Own 500 Shares (2% of a Corporation's Stock)and