Pre-emptive rights mean that current stockholders have the right to maintain their proportionate ownership before new shares may be sold to the general public.

Question

Pre-emptive rights mean that current stockholders have the right to maintain their proportionate ownership before new shares may be sold to the general public.​

Quizplus · Accepted Answer

Pre-emptive rights allow current stockholders to have the first opportunity to purchase new shares before they are offered to the general public. This helps them maintain their current ownership percentage and avoid dilution of their ownership.

Pre-Emptive Rights Mean That Current Stockholders Have the Right to Maintain