Preemptive rights allow existing shareholders to maintain voting control and protect against the dilution of their ownership.

Name: Preemptive rights allow existing shareholders to maintain voting control and protect against the dilution of their ownership.
Brand: Quizplus
Rating: 4.9 (33 reviews)

Question

Quizplus · Accepted Answer

Preemptive rights give shareholders the right to purchase new shares before they are offered to the public, thereby allowing them to maintain their ownership percentage and voting power. This helps protect their investment from dilution.

Preemptive Rights Allow Existing Shareholders to Maintain Voting Control and Protect