Preemptive Right

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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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commercial paper Corporations finances Piercing the Corporate Veil preempt right			In the dilution example above, a preemptive right would have given the first investor the right to purchase a proportional amount of the new issuance to preserve their equity ownership. Using Warrants in Your Private Placement Offering by Nick Jevic / Business community Nevertheless, the companies said all AmBev shareholders have preemptive rights in the subscription of the capital increase resulting. Merger on tap for AmBev and Interbrew Brasil by Modern Brewery Age Not every issuance of stock triggers the preemptive rights of other shareholders, and state law should be consulted in this regard. Use caution in issuing new stock. (Legal Issues) by Hallowell, Andrew / Set-Aside Alert			prediction of danger prediction of misfortune predictive predictory predilection predispose predispose to predisposed predisposition predispositional predominance predominancy predominant predominant part predominantly the same predominate predominating predominating influence predomination preeminence preeminent preeminently preeminently bad preempt preemption Preemptive Right preengagement preestablish preestimate preexamine preexist preexistent preexisting prefabrication preface prefatorial prefatory Prefect prefer prefer a claim prefer a petition prefer a request prefer a request to prefer an appeal prefer charges preferability preferable preference preferential preferential treatment preferment			Preemption Act Preemption Act of 1841 Preemption of State and Local Laws Preemption of State and Local Laws Preemption of State and Local Laws Preemption right Preemption right Preemption right Preemption Rights Preemption Rights Preemption Rights Preemptioner preemptive preemptive preemptive analgesia Preemptive attack Preemptive attack preemptive bid preemptive bid Preemptive Cadaveric Renal Transplantation preemptive chemotherapy Preemptive Control Signature Preemptive Drop Policy Preemptive Goal Programming Preemptive Last Come First Served Preemptive Multi-Tasking Preemptive multitasking Preemptive Priority Preemptive Priority Handoff Preemptive Repeat Identical Preemptive Right Preemptive Rights Preemptive Rights Preemptive Rights Preemptive Threat Defense Preemptive Time Petri Net Preemptive war preemptively preemptor preemptor preemptory preemptory Preemptory challenge Preemptory challenge preempts preempts preen preen preen gland preen gland preen gland preen glands preen glands preen glands Preen oil Preen oil preened preener preeners Preengage Preengagement

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