Q 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.
Q 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.
1. How important do you suppose control is for the average stockholder of a firm whose shares are
traded on the New York Stock Exchange?
2. Is the control issue likely to be of more importance to stockholders of publicly owned or closely held
(private) firms? Explain.
