The pre-emptive right enables a stockholder to

The pre-emptive right enables a stockholder to

a. share proportionately in any new issues of stock of the same class.
b. receive cash dividends before other classes of stock without the pre-emptive right.
c. sell capital stock back to the corporation at the option of the stockholder.
d. receive the same amount of dividends on a percentage basis as the preferred stockholders.


Answer: share proportionately in any new issues of stock of the same class.