Question

This is the equitable right of the stockholders to subscribe to all issues of shares in proportion to their shareholdings to maintain their equity participation in the corporation

A. Appraisal right of dissenting stockholder
B. Right to first refusal in close corporation
C. Right to dividends date entity
D. Pre-emptive right

Answer 1

The correct answer is option D, Pre-emptive Right. This right allows stockholders to maintain their equity participation in the corporation.

Step-by-step explanation:

The correct answer to the question is option D, Pre-emptive Right. Pre-emptive right is an equitable right of stockholders that allows them to maintain their equity participation in the corporation by subscribing to new issues of shares in proportion to their existing shareholdings. This right ensures that stockholders have the opportunity to buy additional shares before they are offered to the general public.