Q838
Right of common stockholders to purchase additional stock issued by company is classified as
A.
common right
B.
pre-emptive right
AnswerC.
purchase right
D.
selling right
Answer: Option B
Solution
Answer: Option B
Solution:
Right of common stockholders to purchase additional stock issued by company is classified as pre-emptive right. A preemptive right offers select shareholders of a corporation the right to buy a proportional interest in any future issue of the company's common stock.