preemptive right
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.
Popular 'Stocks' Terms
Related Personal Finance Articles
Loading...
preemptive right in the news
Loading...
Enter your email address to get our free Term of the Day newsletter!
preemptive right is ...
... part of the Stocks and Investor Relations subjects.







