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 answers are correct

Question

Quizplus · Accepted Answer

The preemptive right allows existing shareholders the opportunity to maintain their original ownership percentage by giving them the right to purchase new shares of stock before they are offered to the general public.

The Preemptive Right Allows Shareholders the