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Which of the following statement correctly describes preemptive rights? A. They allow managers to buy shares of the company below the current market price. B.

Which of the following statement correctly describes preemptive rights?

A.

They allow managers to buy shares of the company below the current market price.

B.

They will result in higher dividend per share for existing shareholders.

C.

They are automatically included in the corporate charter in all states.

D.

They enable the exisiting management to maintain control.

E.

They can protect the existing shareholders against a dilution of ownership.

F.

None of the above.

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