Stockholders always have preemptive rights when new issues of stock are offered.

Question

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Stockholders may or may not have preemptive rights depending on the company's bylaws and state law. Preemptive rights give stockholders the right to purchase new shares of stock in proportion to their current ownership before the stock is offered to the general public. However, some companies may choose to not offer preemptive rights to their stockholders.

Stockholders Always Have Preemptive Rights When New Issues of Stock