Maintaining their proportionate share in the ownership of a corporation when new stock is available to be purchased is an example of which stockholder right?

Question

Quizplus · Accepted Answer

Preemption is the right of existing stockholders to maintain their proportionate ownership in a company by having the first opportunity to purchase any new shares issued by the company before they are offered to the public. This helps shareholders avoid dilution of their ownership in the company.

Maintaining Their Proportionate Share in the Ownership of a Corporation