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Social Security rights, Medicare, Medicade
Answer:
b. protects the current shareholders against a dilution of their ownership interests.
Explanation:
Shares are ownership interests that are owned by business owners and measures the degree to which an individual has a stake in a company.
Preemtive right occurs when a shareholder has a right to purchase a particular portion of newly issued shares.
For example if an individual has 40,000 shares and additional 250,000 shares are issued, he can have the right to purchase an additional 30,000 of the new shares.
The preemtive right prevents dilution of ownership interests by ensuring old stockholders have a stake in newly issued shares.
The option that best describes the difference between stocks and bonds is <span>B.</span><span> Stocks allow investors to own a portion of the company; bonds are loans to the company.
When you have stocks, it means that you bought one "part" of a company, and in case that company gets sold one day, you will get a profit for what you bought. Bonds are quite the opposite - it is the money a company borrows from someone in order to pay something.</span>
