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State law provides that existing shareholders may buy new issues of stock in the same proportion as their current holdings. This is done to allow
State law provides that existing shareholders may buy new issues of stock in the same proportion as their current holdings. This is done to allow the current stockholders to keep the same voting and dividend rights they had before the new issue. This right is known as a right of:
Redemption.
Ratification.
Preemption.
First refusal.
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