Which of the following rights is NOT a basic property of common stock?

The correct choice identifies preemptive rights as not being a basic property of common stock. While dividend rights, voting rights, and the right to share in asset distribution upon liquidation are fundamental characteristics of common stockholders, preemptive rights are more of an additional feature that is not universally granted.

Common stock typically provides shareholders with voting rights, allowing them to vote on key issues such as electing the board of directors and approving major corporate decisions. Dividend rights entitle shareholders to receive dividends, which are distributions of a portion of the company’s earnings. Furthermore, shareholders with common stock have rights to participate in the distribution of assets if the company liquidates, ensuring they receive their share of what remains after debts are settled.

Preemptive rights, on the other hand, allow existing shareholders the first option to purchase additional shares to maintain their proportional ownership during new stock issuances. While these rights can be beneficial, they are not a standard feature of common stock and are often provided only if explicitly stated in the corporate charter or bylaws. This makes preemptive rights a conditional privilege rather than a basic property of common stock.