The right of current shareholders to maintain their fractional ownership of a company by buying a proportional number of shares of any future issue of common stock. Most states consider preemptive rights valid only if made explicit in a corporation's charter. also called subscription privilege or subscription right.
Related information about preemptive right:
- Preemptive Right Definition | Investopedia
... event there is a seasoned offering. A preemptive right is written in the contract between the purchaser and the company, but does not function like a put option.
- What is the Preemptive Right?
The preemptive right is the right belonging to existing shareholders of a corporation ... The preemptive right is an anti-dilutive provision and is also known as the ...
- Pre-emption right - Wikipedia, the free encyclopedia
Also termed 'first option to buy.'" ^ Preemptive right definition on InvestorWords. com; ^ Subscription rights explained on thismatter.com; ^ www.lectlaw.com ...
- What is preemptive right? definition and meaning
Definition of preemptive right: The right of current shareholders to maintain their fractional ownership of a company by buying a proportional number of shares of ...
- Preemptive Right - Legal Dictionary - The Free Dictionary
The privilege of a stockholder to maintain a proportionate share of the ownership of a corporation by purchasing a proportionate share of any new stock issues.
- preemptive right - The Free Dictionary
The right of certain stockholders to maintain ownership of a constant percentage of a firm's stock. Such stockholders have the first opportunity to purchase new ...
- The Preemptive Right of Shareholders - JStor
THE so-called " preemptive right " of shareholders in a cor- poration is, in ... acquired the force of a fixed rule of law giving a preemptive right under certain ...
- preemptive right: Definition from Answers.com
preemptive right n. The right of certain stockholders to maintain ownership of a constant percentage of a firm's stock.