Final answer:
The preemptive right is important to shareholders because it allows them the opportunity to maintain their percentage of ownership in a company.
Step-by-step explanation:
The preemptive right is important to shareholders because it allows them the opportunity to maintain their percentage of ownership in a company. This right gives shareholders the first chance to buy new shares of stock before they are offered to the general public. By exercising their preemptive right, shareholders can protect their investment and prevent dilution of their ownership.
For example, if a company decides to issue new shares of stock to raise capital for expansion, shareholders with preemptive rights can purchase these new shares before they are sold to other investors. This ensures that the existing shareholders maintain their proportional ownership in the company.