Which of the following is false?
A) The common stock of a corporation can be either privately or publicly owned.
B) Firms often issue common stock with no par value.
C) Preemptive rights often result in a dilution of ownership.
D) A firm's corporate charter indicates how many authorized shares it can issue.

Question

Quizplus · Accepted Answer

Preemptive rights actually protect against dilution of ownership by allowing existing shareholders the right to purchase a proportional amount of new shares issued by the company.

Which of the Following Is False