preemptive right

Definition
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.




preemptive right is ...
... part of the
Stocks and Investor Relations subjects.


Related Terms

antidilution provision -  More
common shares -  More
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