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Preemptive Right
(redirected from Subscription Privileges)

   Also found in: Dictionary/thesaurus, Financial 0.01 sec.

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.

In most jurisdictions, an existing stockholder has the right to buy additional shares of a new issue to preserve Equity before others have a right to purchase shares of the new issue.


preemptive right n. the right of a shareholder in a corporation to have the first opportunity to purchase a new issue of stock of that corporation in proportion to the amount of stock already owned by the shareholder. (See: corporation, stock)



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The 433,532 shares not subscribed for pursuant to the exercise of the basic subscription privileges and over-subscription privileges were purchased by the standby purchaser for a purchase price of approximately USD3m.
The 3,216,698 shares available to fill over-subscription requests will be allocated among rights holders exercising their over-subscription rights in proportion to the number of shares in their basic subscription privileges.
subscription privileges to the extent that other rights holders do not exercise their basic subscription privileges in full.
 
 
 
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