Right of stockholders of firm that new shares must be offered to existing stockholders first rather than new stock holders is classified as

A. non-offered rights
B. pre-emptive rights
C. existing rights
D. securitize rights
✅ The correct answer is option B.
Right of stockholders of firm that new shares must be offered to existing stockholders first rather than new stock holders is classified as pre-emptive rights. Preemptive rights are a clause in an option, security or merger agreement that gives the investor the right to maintain his or her percentage ownership of a company by buying a proportionate number of shares of any future issue of the security.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top