Question

1. The pre-emptive right of a common stockholder is the right toa. share proportionately in corporate assets upon liquidation.b. share proportionately in any new issues of stock of the same class.c. receive cash dividends before they are distributed to preferred stockholders.d. exclude preferred stockholders from voting rights.

Answer 1

Answer:

The pre-emptive right of a common stockkolder is the reight to share proportionately in any new issues of stock of the same class. Letter B

Explanation:

The pre-emptive right is a right belonging to existing shareholders of a corporation to avoid a involuntary dilution of their ownership stake by giving them the chance to buy a proportional interest of any future issuance of common stock.