Ch 09: Assignment-Stocks and Their Valuation c Back to Assignment Attempts: Keep the Highest:16 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 vote in person at the company's annual meeting, through the mail, or by transferring the right to vote to another person by means of his preemptive right. 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 $50.00 per share. The company needs to raise new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $40.00 per share. Larry worries about the value of his investment Larry's current investment in the company is additional purchase, Larry's investment will be worth If the company issues new shares and Larry makes no 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 MacBook Ai