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Mrrafil [7]
3 years ago
9

If a stock has a preemptive right, it gives current stockholders the right to purchase any new shares issued by the firm, so as

to maintain their level of ownership. This right helps protect current stockholders against both dilution of control and dilution of value.
a. True
b. False
Business
1 answer:
Leto [7]3 years ago
3 0

Answer: True

Explanation:

When new shares are issued, the preemptive right helps maintain the position of the shareholder. The preemptive right is vital to shareholders as it protects them against the dilution of ownership interests.

Also, it gives current stockholders the right to purchase any new shares issued by the firm, so as to maintain their level of ownership.

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That which is used by a seller to deceive a buyer is: a. Bait and switch

Bait and switch is a tactic that is used by entrepreneurs to attract customers. They tell them to purchase a good at a low price.

However, when they come to buy, they are encouraged to buy a good that costs more.

So, in this way, the bait and switch tactics is used by sellers to deceive the buyers.

Learn more about the bait and switch tactics here:

brainly.com/question/981097

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Answer:

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