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 companys objectives.

True or False: Larry will receive dividends together with preferred stockholders.

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 ______. Larry could be protected if the firms 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 _______.