A preemptive right is a preference over other shareholders to cast the determining vote on fundamental changes affecting the corporation.

Name: A preemptive right is a preference over other shareholders to cast the determining vote on fundamental changes affecting the corporation.
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Question

Quizplus · Accepted Answer

A preemptive right is the right of existing shareholders to purchase additional shares before the company offers them to the public, not a preference in voting on corporate changes.

A Preemptive Right Is a Preference Over Other Shareholders to Cast