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IIA Exam IIA-CFSA Topic 10 Question 37 Discussion

Actual exam question for IIA's IIA-CFSA exam
Question #: 37
Topic #: 10
[All IIA-CFSA Questions]

Although these rights do not always exist, if they do, shareholders are entitled to buy any new

issue of stock in proportion to their holdings. If a person owns 5% of a corporation, then he or

she would have the right to buy 5% of newly issued shares. These are:

Show Suggested Answer Hide Answer
Suggested Answer: C

by Herman at Aug 05, 2023, 05:24 PM

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Myra
2 months ago
Preemptive rights? More like pre-emptive snooze-fest. But hey, at least it's not proxy rights. Those are a real pain in the proxy-tail.
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Chandra
23 days ago
C) Inspection rights
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Sommer
24 days ago
B) Preemptive rights
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Lashawn
1 months ago
A) Proxy rights
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Reita
2 months ago
Preemptive rights? Isn't that what you call it when you cut in line at the cafeteria? Oh well, B it is.
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Winfred
23 days ago
Exactly. It helps prevent dilution of ownership for current shareholders.
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Charisse
28 days ago
So, if you own 5% of the company, you have the right to buy 5% of the new shares.
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Dottie
29 days ago
That's right. It allows existing shareholders to maintain their ownership percentage.
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Harrison
1 months ago
Yes, preemptive rights refer to the right to buy new shares before they are offered to the public.
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Belen
2 months ago
Hmm, preemptive rights? Sounds like a fancy way of saying 'dibs on the new shares'. I'll go with B.
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Trinidad
1 months ago
User 3: Preemptive rights it is then. Option B.
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Long
1 months ago
User 2: Yeah, I agree. I'll go with option B.
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Krystal
2 months ago
User 1: I think preemptive rights mean we get first dibs on new shares.
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Nana
3 months ago
I was unsure at first, but B has to be the right answer. Preemptive rights make perfect sense in this context.
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Trinidad
1 months ago
User 3: Yes, preemptive rights give existing shareholders the opportunity to purchase new shares before they are offered to the public.
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Cory
1 months ago
User 2: I agree, preemptive rights allow shareholders to maintain their ownership percentage.
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Dexter
1 months ago
User 1: I think B) Preemptive rights is the correct answer.
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Kerry
3 months ago
Preemptive rights, no doubt! This is a classic shareholder entitlement that ensures proportional ownership.
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Elinore
3 months ago
I'm not sure, but I think preemptive rights make sense to protect shareholders from dilution.
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Tommy
3 months ago
I agree with Remona, shareholders should have the right to buy new shares in proportion to their holdings.
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Remona
3 months ago
I think the answer is B) Preemptive rights.
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