The pre-emptive right is the right to:
A)share in the management of the company.
B)share proportionately in any new sale of shares.
C)share in the profits and losses of the company.
D)share in any dividends paid by the company.

Question

Quizplus · Accepted Answer

The pre-emptive right gives shareholders the right to purchase new shares of the company before they are offered to the public. This allows shareholders to maintain their proportional ownership stake in the company and prevent their ownership percentage from being diluted by new shareholders. Therefore, the correct choice is B, as it pertains to the right to share proportionately in any new sale of shares.

The Pre-Emptive Right Is the Right To