Some stockholders have a preemptive right that allows them to maintain their ownership percentage in the company by purchasing additional shares of any new stock issues.

Rights offerings, like preemptive rights, prevent dilution of stock for existing shareholders when new shares are issued. Which of these companies are likely to make a rights offering?

1. Companies aiming to bring changes to their capital structure by decreasing equity with debt

2. Companies aiming to bring changes to their capital structure by decreasing debt with equity