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Which of the following is not an advantage of common stockholders having a preemptive right to purchase any new shares from the corporation? a .
Which of the following is not an advantage of common stockholders having a preemptive right to purchase any new shares from the corporation?
a Current stockholders can remain in control.
b It prevents a transfer of wealth to new stockholders.
c It prevents a company from issuing low price shares and purchasing the new shares themselves.
d In all states, a preemptive right is automatically included in the corporate charter.
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