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Lovey Is a Shareholder of Matchless Corporation with Preemptive Rights

Question 61

Multiple Choice

Lovey is a shareholder of Matchless Corporation with preemptive rights. With these rights, Lovey can


A) buy a prorated share of a new issue of stock before other buyers.
B) choose to have Matchless act exclusively in a certain area.
C) "preempt" managerial decisions that affect shareholders.
D) sell a prorated share of a new issue of stock before other sellers.

Correct Answer:

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