What is meant by a shareholder preemptive right


Consider the following questions:

1. What is meant by a shareholder's preemptive right?

2. Terminology varies in the way companies differentiate among share types. But many corporations designate shares as common or preferred. What are the two special rights usually given to preferred shareholders?

If possible, please give examples to better understand your response.

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Accounting Basics: What is meant by a shareholder preemptive right
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