FYI Corporation has increased its capital stock and new shares of stock are issued. The stockholders of FYI Corp wish to exercise their pre-emptive right regarding the shares to be issued. Which of the following shares does a pre-emptive right of stockholders extends?
A.	to shares to be issued in compliance with laws requiring stock offerings or minimum stock ownership by the public
B.	to shares to be issued in good faith with the approval of stockholders representing 2/3 of the outstanding capital stock in exchange for property needed for corporate purposes
C.	to shares to be issued in good faith with the approval of the stockholders representing 2/3 of the outstanding capital stock in payment of previously contracted debt
D.	treasury shares reacquired using the funds from the surplus profits of the corporation which could have been declared as dividends
Answer:D
FYI Corporation has increased its capital stock and new shares of stock are issued. The stockholders of FYI Corp wish to exercise their pre-emptive right regarding the shares to be issued. Which of the following shares does a pre-emptive right of stockholders extends?
A.	to shares to be issued in compliance with laws requiring stock offerings or minimum stock ownership by the public B.	to shares to be issued in good faith with the approval of stockholders representing 2/3 of the outstanding capital stock in exchange for property needed for corporate purposes C.	to shares to be issued in good faith with the approval of the stockholders representing 2/3 of the outstanding capital stock in payment of previously contracted debt D.	treasury shares reacquired using the funds from the surplus profits of the corporation which could have been declared as dividends