Series 7 - General Securities Representative Exam

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Which of the following allow existing stockholders to purchase new shares of the corporation at a discount directly from the issuer, before the shares are offered to the public?

Convertible Bonds
A
IPOs
B
Pre-emptive Rights
C
Identified Shares
D

Explanations

To maintain their proportionate ownership of the corporation, pre-emptive rights allow existing shareholders to buy new shares of the company directly from the issuer, at a discount, before the shares are offered to the public

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