A Preemptive Right Is

A preemptive right is

A) the right of stockholders to acquire a proportional amount of any new issues of common stock.
B) the right of stockholders to fire and replace the board of directors.
C) the right of the corporation to enter into legally binding contracts without the direct approval of the shareholders.
D) the right of stockholders to supersede the actions of top management.
E) the right of top management to act on behalf of the stockholders.