If you own 800 shares (3% of a corporation's stock)and the corporation issues 10,000 new shares,how many total shares will you have after exercising your preemptive right?

Question

Quizplus · Accepted Answer

As the shareholder has a preemptive right, they have the right to purchase additional shares in proportion to their existing ownership. Therefore, the shareholder can purchase 3% of the new shares issued, which is 300 shares. Adding this to their existing 800 shares, they will have a total of 1,100 shares.

If You Own 800 Shares (3% of a Corporation's Stock)and