Question: It is regularly stated that the one purpose of the preemptive right is to allow individuals to maintain their proportionate share of the ownership and control of a corporation.
[A] How important do you assume control is for the average stockholder of a company whose shares are traded on the New York Stock Exchange?
[B] Is the control issue likely to be of more importance to stockholders of publicly owned or closely held (private) firms? Explain your reasoning.