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:

AProxy rights

BPreemptive rights

CInspection rights

DLiquidation rights

Show Suggested Answer

Suggested Answer: C

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

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9 days ago

I'm not sure, but I think preemptive rights make sense to protect shareholders from dilution.

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10 days ago

I agree with Remona, shareholders should have the right to buy new shares in proportion to their holdings.

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12 days ago

I think the answer is B) Preemptive rights.

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