The term preemptive right pertains to which of the following?
A)The Board of Directors' rights in liquidation.
B)Present shareholders' right to purchase shares from any additional share issuances.
C)Present shareholders' right to purchase treasury shares when reissued.
D)Preferred stockholders' right to dividends.

Question

Quizplus · Accepted Answer

Preemptive rights allow existing shareholders the opportunity to purchase additional shares before the company offers them to the public, maintaining their proportional ownership in the company.

The Term Preemptive Right Pertains to Which of the Following