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The purpose of preemptive right provision is to prevent undesired dilution of current common stockholder equity positions?

A. Preferred stockholders to convert into common stock.

B. Common stockholders to maintain their proportionate ownership of the firm when new stock is issued.

C. Bondholders to receive interest before any stockholder dividends are paid.

D. Common stockholders to assign their own votes by proxy.

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Question added by Deleted user
Date Posted: 2015/10/28

Answer  B  is the right option .

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