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    Foundations of Financial Management Study Set 1
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    Exam 17: Common and Preferred Stock Financing
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    Pre-Emptive Rights Provision Ensures That Management Cannot Subvert the Position
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Pre-Emptive Rights Provision Ensures That Management Cannot Subvert the Position

Question 106

Question 106

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Pre-emptive rights provision ensures that management cannot subvert the position of present shareholders by selling shares to outside interests without first offering them to current shareholders.

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