Final answer:
The right of a shareholder to buy additional shares of company stock before they are available to the public to maintain their ownership percentage is known as a preemptive right.
Step-by-step explanation:
The original shareholder's right to subscribe to additional shares in proportion to his or her present holding if the corporation issues new stock is known as a preemptive right. This right allows existing shareholders to maintain their proportional ownership of the company by purchasing a proportional amount of new shares before the company offers them to the public. Such rights are valuable to shareholders as they can prevent dilution of their ownership stake when a corporation decides to issue more stock. Shareholders are people who own at least some shares of stock in a firm, meaning they have a claim on partial ownership, which includes a share of the company's profits and the right to vote on corporate matters, such as corporate policy and the election of the board of directors.