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In the absence of restrictive provisions, what are the basic rights of stockholders of a corporation.

In the absence of restrictive provisions, each share carries the following rights:

· To share proportionately in profits and losses.

· To share proportionately in management (the right to vote for directors).

· To share proportionately in corporate assets upon liquidation.

· To share proportionately in any new issues of stock of the same class-called the preemptive right.

The preemptive right is the privilege referred to as a stock right or warrant. The warrants issued in these situations are of short duration, unlike the warrants issued with other securities.

Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2010). Intermediate accounting, (13th ed.). Hoboken, NJ: John Wiley & Sons.

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