preemptive right love

preemptive right

Definitions

from The American Heritage® Dictionary of the English Language, 4th Edition

  • n. 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 stock in the firm proportionate to the percentage of shares already held.

from Wiktionary, Creative Commons Attribution/Share-Alike License

  • n. The right of shareholders to maintain a constant percentage of a company's shares by receiving a proportionate fraction of any new shares issued, thus preempting any dilution

from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.

  • n. the right granting to shareholders the first opportunity to buy a new issue of stock; provides protection against dilution of the shareholder's ownership interest

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