The right of ordinary shareholders to protect their proportionate interest in a corporation by having the first opportunity to buy additional proportionate shares of ordinary shares issued by the corporation is called a:

Question

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The right described in the question is known as a preemptive right. This right allows ordinary shareholders to maintain their proportionate ownership in the corporation by having the first opportunity to purchase additional shares before they are offered to the general public or other investors. Proxy rights refer to the ability to vote on behalf of another shareholder. A right to call typically refers to a bond or debt instrument that grants the holder the right to redeem the security before maturity. Financial leverage refers to using debt financing to increase returns to shareholders. While voting rights are a separate and important right of shareholders, they are not directly related to the concept described in the question.

The Right of Ordinary Shareholders to Protect Their Proportionate Interest