1. Larry Nelson holds 1,000 shares of General Electrics (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Larry doesnt 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 (Preemptive right/ Corporate charter/ 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 companys 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.

Larrys current investment in the company is________. If the company issues new shares and Larry makes no additional purchase, Larrys investment will be worth________.

This scenario is an example of a (Takeover/ Proxy/ Dilution/ A poison pill). Larry could be protected if the firms corporate charter includes a (Preemptive right/ Proxy) provision.

If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become_________.