Carrie owns a lot of stock in the Rowan Hill Corporation. Based on recent developments, she is thinking about exercising her pre-emptive rights. This means that Rowan Hill has decided to issue more shares of its common stock.

Question

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Exercising pre-emptive rights allows an existing shareholder to maintain their ownership percentage by purchasing additional shares before they are offered to the general public. This occurs when a company issues new shares of common stock.

Carrie Owns a Lot of Stock in the Rowan Hill