Question

It is often said that the primary purpose of the preemptive right is to allow individuals to maintain their proportionate share of the ownership and control of a corporation.
a. How important do you suppose this consideration is for the average stockholder of a firm whose shares are traded on the New York Stock Exchange?
b. Is the preemptive right likely to be of greater importance to stockholders of publicly owned or closely held firms? Explain.



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  • CreatedNovember 24, 2014
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