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Examveda

Right of common stockholders to purchase additional stock issued by company is classified as

A. common right

B. pre-emptive right

C. purchase right

D. selling right

Answer: Option B

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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