Preemptive rights are the rights of existing shareholders to maintain their proportionate ownership when new shares are issued.

Name: Preemptive rights are the rights of existing shareholders to maintain their proportionate ownership when new shares are issued.
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Question

Quizplus · Accepted Answer

Preemptive rights allow existing shareholders to purchase new shares in proportion to their current ownership before they are offered to the general public. This helps to maintain their ownership percentage and avoid dilution.

Preemptive Rights Are the Rights of Existing Shareholders to Maintain