Foundations of Financial Management
Foundations of Financial Management
16th Edition
ISBN: 9781259277160
Author: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Publisher: McGraw-Hill Education
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Chapter 17, Problem 4DQ
Summary Introduction

To explain: The way that preemptive rights protect stockholders from dilution.

Introduction:

Preemptive right:

This is a contractual clause that gives shareholders a right to purchase additional shares in the company before the issue is open for the general public when the issuance of shares takes place in the future.

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