Accounting for stock issued with preemptive rights, issuing stock with preemptive rights protects existing stockholders from involuntary dilution of ownership interest, preemptive rights protects shareholders interest in the Corp from being reduced by the issuance of additional stock without their knowledge & prices unfavorable to them, Preemptive stock rights allows each owner to purchase stock to retain the same proportionate interest in the Corp for any new issues of stock of the same class, example for President-A issues capital stock par value $200K to himself for cash, Retired-B objected & claims his interest is injured thru not offerring stock based on preemptive stock rights, involuntary dilution of ownership interest, the imbalance thru preemptive stock rights can be corrected by issuing other owners capital stock equal to % of their present holdings, proportionate ownership has been restored, detailed accounting by Allen Mursau

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