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1. Rights and privileges of common stockholders Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company's objectives. True or False: Larry can invest in another company that is selling class A stocks to the public, and class B shares will be retained by company insiders. This will help the founders maintain control in the company. O False O True Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company's stock currently is valued at $43.00 per share. The compan poison pill se new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $34.40 per share. Larry worrie alue of his investment. dilution If the company issues new shares and Larry makes no additional purchase, Larry's Larry's current investment in ti a proxy investment will be worth a takeover 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 will become

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