The most important feature of the preemptive right is that the rights:

Question

Quizplus · Accepted Answer

The most important feature of the preemptive right is that it affords shareholders protection against dilution. This means that if a company issues new shares, existing shareholders have the right (but not the obligation) to purchase enough of these new shares to maintain their proportional ownership in the company. This helps to protect their investment from being diluted by new shareholders who would otherwise gain more control of the company without their consent. Therefore, B is the correct choice.

The Most Important Feature of the Preemptive Right Is That