A present shareholder maintains the privilege of maintaining proportionate ownership through the provision of

Question

Quizplus · Accepted Answer

Preemptive rights allow existing shareholders to maintain proportionate ownership by giving them the right to purchase newly issued shares before they are made available to the public. Treasury stock refers to shares that have been repurchased by the company and are not available for public trade. Cash dividends and stock dividends are forms of distributing profits to shareholders but do not necessarily maintain proportionate ownership.

A Present Shareholder Maintains the Privilege of Maintaining Proportionate Ownership