The rights of common shareholders to receive a proportionate share of assets on liquidation is preemptive rights
BT: Knowledge

Question

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The statement is referring to the right of common shareholders to receive a proportionate share of assets on liquidation, which is not the same as preemptive rights. Preemptive rights give existing shareholders the right to maintain their proportional ownership in a company by purchasing additional shares before they are offered to the public.

The Rights of Common Shareholders to Receive a Proportionate Share