Question: The preemptive right is designed to allow existing shareholders the right to sell their existing shares before the new offer. allow managers to preempt a

The preemptive right is designed to

allow existing shareholders the right to sell their existing shares before the new offer.

allow managers to preempt a stock offering if they do not like the terms of the deal.

allow existing shareholders to buy shares of the new offering if they desire.

allow management to diffuse stock ownership any voting power.

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