The pre-emptive right allows a shareholder to vote twice if he or she owns preferred stock along with common stock.

Name: The pre-emptive right allows a shareholder to vote twice if he or she owns preferred stock along with common stock.
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Question

Quizplus · Accepted Answer

The pre-emptive right allows a shareholder to maintain their proportional ownership in the company by purchasing new shares before they are offered to the general public. It does not give a shareholder the right to vote twice.

The Pre-Emptive Right Allows a Shareholder to Vote Twice If