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  3. 1. rights and privileges of common stockholders aa

1. Rights and privileges of common stockholders Aa Aa Larry Nelson holds 1,000 shares of...

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1. Rights and privileges of common stockholders Aa Aa Larry Nelson holds 1,000 shares of General Electric's (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesn't plan to attend. Larry did not sell his shares but gave his voting rights to the management group running General Electric (GE). Larry must have signed a gives the management group control over his shares. that Larry also holds 2,000 shares of common stock in a company that gnly has 20,000 shares outstanding. The company's stock cu value of his investment. Larry's current investment in the company is rrently is valued at $44.00 per share. The company needs to raise new capital to invest in The company is looking to issue 5,000 new shares at a price of $35.20 per share. Larry worries about the . If the company issues new shares and Larry makes no additional purchase, Larry's investment will be worth This scenario is an example of . Larry could be protected if the firm's corporate charter includes a provision. If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm wil become

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