Scubapro Corporation currently has 500,000 shares of common stock outstanding and plans to issue 200,000 more shares in a seasoned equity offering. The current shareholders have preemptive rights on any new issues of common stock by Scubapro Corporation. How many shares would an investor who currently has 20,000 shares, have the right to buy if she exercises her preemptive right?

Question

Nolan Finley

Business

10 September, 04:28

Scubapro Corporation currently has 500,000 shares of common stock outstanding and plans to issue 200,000 more shares in a seasoned equity offering. The current shareholders have preemptive rights on any new issues of common stock by Scubapro Corporation. How many shares would an investor who currently has 20,000 shares, have the right to buy if she exercises her preemptive right?

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Answers (1)

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Kareem · Answer 1

the answer is : the shareholder can buy as many he wants to owned

Explanation:

for a investment company when they offers a new shares, and the shareholders who has been buying every time with the same company they get a benefits from new shareholders, that is why any one them can buy any share without limit.