The preemptive right refers to the shareholder's right to:
A) Maintain a proportional ownership interest in the corporation.
B) Vote for members of the board of directors.
C) Receive a share of dividends.
D) Share in profits proportionally with all other stockholders.

Question

Quizplus · Accepted Answer

The preemptive right allows a shareholder to maintain their proportional ownership interest in the corporation by having the right to purchase additional shares before they are offered to the general public. Options B, C, and D are not related to the preemptive right.

The Preemptive Right Refers to the Shareholder's Right To