The preemptive right means common stockholders have the right to purchase any additional shares sold by the firm. It can help current shareholders maintain control of the firm and prevent managers from stealing wealth from the current shareholders.

True.

False.

Under what forms of Efficient Market Hypothesis, investors cannot profit via inside information?

Weak-form Efficient Market Hypothesis

Semi-strong form Efficient Market Hypothesis

Strong-form Efficient Market Hypothesis

None of the above is correct.