The preemptive right allows shareholders the ____.
A) opportunity to maintain their original ownership percentage
B) right to purchase shares in the secondary markets
C) right to vote for members of the board of directors
D) All of these are correct

Question

Quizplus · Accepted Answer

The preemptive right allows existing shareholders to maintain their proportional ownership in the company by having the right to purchase new shares before they are offered to the public. This means that shareholders have the opportunity to maintain their original ownership percentage.

The Preemptive Right Allows Shareholders the ____