Existing Shareholders

Existing shareholders:

A) May be granted a preemptive right by a firm's articles of incorporation to maintain their proportional ownership position.
B) Are required to purchase shares in every new equity offering in an amount equal to their proportional ownership of the firm.
C) Do not have the option of selling any of the rights they are granted in a rights offering.
D) Are generally well advised to let the rights they receive expire.
E) Can maintain their proportional ownership position without purchasing additional shares when there is a seasoned equity offering.