preemptive right gives current stockholders the right to purchase, on a pro rata basis, any new shares issued by the firm This right helps protect current stockholders against both dilution of control and dilution of value.

Question

Quizplus · Accepted Answer

This statement is true. Preemptive rights give current stockholders the first option to purchase new shares, which helps protect their ownership and value in the company.

Preemptive Right Gives Current Stockholders the Right to Purchase, on a Pro