Back to Assignment Attempte 2 Keep the Highest 2/4 1. Rights and privileges of common stockholders 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 proxy that gives the management group control over his shares. 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 346.00 per share. The company needs to rate new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $36.80 per share. Larry worries about the value of his investment If the company issues new shares and carry makes no additional purchase, Larry's Larry's current investment in the company is 592.000 investment will be worth provision This scenario is an example of dilution Larry could be protected if the firm's corporate charter includes a if Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the fiem will become Grade It Now Save & Continue Continue without saving