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3 August, 16:26

The preemptive right is important to shareholders because it

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  1. 3 August, 16:52
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    The correct answer is protects the current shareholders against a dilution of their ownership interests.

    Explanation:

    The right of preference is the priority or first option given to a person or a group of people to hold a legal business. In public limited companies, this right is understood as that which shareholders have to acquire preferably shares of the company to which they belong.
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