The preemptive right gives shareholders the right to maintain their percentage ownership in the firm.

Name: The preemptive right gives shareholders the right to maintain their percentage ownership in the firm.
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Question

Quizplus · Accepted Answer

The preemptive right allows existing shareholders to purchase new shares before they are offered to the public, enabling them to maintain their proportional ownership in the company.

The Preemptive Right Gives Shareholders the Right to Maintain Their