Which of the following represents one of the basic rights of stockholders?

Question

Quizplus · Accepted Answer

The right to maintain proportionate ownership is one of the fundamental rights of stockholders, and it is known as the preemptive right. This right grants stockholders the option to purchase new shares issued by the corporation before they are offered to the public, enabling them to maintain their proportional ownership stake.

B, C, and D are not basic rights of stockholders. While a corporation may choose to buy back its own stock at a specified price, stockholders do not have an inherent right to sell their shares to the company. Authorizing business contracts and determining stock issuance prices are typically the responsibility of the corporation's board of directors, not individual stockholders.

Which of the Following Represents One of the Basic Rights