A Moving to another question will save this response. Question 7 The preemptive right is designed to allow existing shareholders to buy shares of the new offering if they desire. hs allow managers to preempt a stock offering if they do not like the terms of the deal. allow existing shareholders the right to sell their existing shares before the new offer. allow management to diffuse stock ownership any voting power. The largest single type of holder of common stock ($) is mutual funds. O households. pension funds. life insurance firms