The Preemptive Right Is Designed to

The preemptive right is designed to

A) allow management to diffuse stock ownership any voting power.
B) allow managers to preempt a stock offering if they do not like the terms of the deal.
C) allow existing shareholders the right to sell their existing shares before the new offer.
D) allow existing shareholders to buy shares of the new offering if they desire.
E) None of these choices are correct.