If a shareholder does not exercise his or her preemptive rights within the stated time, shares can then be sold to anyone.

Name: If a shareholder does not exercise his or her preemptive rights within the stated time, shares can then be sold to anyone.
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If a shareholder does not exercise his or her preemptive rights within the stated time, the shares can then be offered to other shareholders or sold to anyone. This process is known as an oversubscription or a standby underwriting.

If a Shareholder Does Not Exercise His or Her Preemptive