An investor owns 5% of a company’s shares. The company issues preemptive rights during a new offering. What is the purpose of these rights?

1. ATo allow the investor to maintain their 5% ownership by purchasing new shares first.✓ Correct answer
2. BTo give the investor additional voting rights.
3. CTo force the investor to sell existing shares.
4. DTo require the company to buy back the investor's shares.

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