________ are rights that give existing shareholders the option of subscribing to new shares being issued in proportion to their current ownership interests.

Question

Quizplus · Accepted Answer

Preemptive rights, also known as subscription rights or rights offerings, give existing shareholders the option to purchase new shares before they are offered to the public. This allows shareholders to maintain their proportional ownership stake in the company and avoid dilution of their ownership percentage.

________ Are Rights That Give Existing Shareholders the Option of Subscribing