________ allows stockholders to purchase additional shares at a price below the market price,in direct proportion to their number of owned shares.

Question

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A rights offering allows current stockholders to purchase additional shares at a discounted price, in proportion to their current ownership. This is known as a preemptive right, as it gives current stockholders priority over new investors. This can help to prevent dilution of the ownership of current stockholders. Treasury stock refers to shares that a company has previously issued and then reacquired, and proxy statements are documents used to vote on corporate matters.

________ Allows Stockholders to Purchase Additional Shares at a Price