1. Rights and privileges of common stockholders Aa Aa 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: The preemptive right allows Larry to purchase any additional shares sold by the company. This right will protect Larry from dilution in the value of the stocks he holds. O False 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 $49.00 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 $39.20 per share. Larry worries about the value of his investment. . If the company issues new shares and Larry makes no Larry's current investment in the company is additional purchase, Larry's investment will be worth . Larry could be protected if the firm's corporate charter includes a This scenario is an example of provision. If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become