Concept:This is a corporate finance right that protects existing shareholders from losing ownership percentage.
Explanation:The provision gives current holders of common stock the first chance to buy newly issued shares.
This is called a pre-emptive right.
It allows shareholders to maintain their proportional ownership when new shares are issued.
The right applies before shares are offered to the general public or outside investors.
Other options, such as over-subscription, ex-dividend, or general shareholder rights, do not specifically mean the first option to purchase new common stock.
Answer:A. pre-emptive right