If a firm's stockholders are given the preemptive right, this means that stockholders have the right to call for a meeting to vote to replace the management.Without the preemptive right, dissident stockholders would have to seek a change in management through a proxy fight.

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The statement misrepresents the preemptive right, which is the right of existing shareholders to maintain their percentage ownership by purchasing new shares before they are offered to the general public. The preemptive right does not relate to management changes or proxy fights.

If a Firm's Stockholders Are Given the Preemptive Right, This