I just need help with a reply to this post. Thank you!

Chapter 9 question 9-1 It is frequently stated that the one 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 control is for the average stockholder of a firm whose shares are traded on the New York Stock Exchange? b. Is the control issue likely to be of more importance to stockholders of publicly owned or closely held (private) firms? Explain. (1) It is very important because it will prevent the management from issuing the large shares amount then purchasing the same shares. It will also protect the price of stock against dilution value. I think both the firm will experience the same issues. When management issued more shares then purchasing the same shares would allow them more control on the company. Also, dilution of value would be experiences by both types of firms. 2) Yes. The price of a common share of stock is the Present Value of its estimated future dividends (2) The preemptive right is clearly important to the stockholders of closely held (private) firms whose owners are interested in maintaining their relative control positions