Preemptive Right

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Preemptive Right

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)

References in periodicals archive ?
In light of the prevailing Ordinary Share price and the likely costs of the exercise, the Board, as subscription trustee, has resolved not to exercise any unexercised Subscription Rights in respect of the 1 October 2015 Subscription Date.
The Company will distribute to its stockholders of record as of the Effective Date, their subscription rights certificate, a copy of the prospectus supplement dated January 29, 2015 for this Rights Offering, which is made part of the registration statement, and instructions for participating in this Rights Offering.
The subscription rights have been approved for listing on the NASDAQ Global Select Market under the symbol "SHLDZ", and are expected to begin trading on that market on October 31, 2014.
The subscription rights will be distributed to all stockholders of Holdings, and every stockholder will have the right to participate on the same terms in accordance with its pro rata ownership of the Company's common stock.
Upon commencement of the rights offering, the Company will distribute non-transferable subscription rights to purchase shares of its Class A Common Stock to each holder of its Class A Common Stock and Class B Common Stock as of the close of business on June 14, 2010, the record date for the rights offering.
given each year a 1:5 Subscription Right that will allow
The subscription rights will be exercisable until the close of business on June 10, 2009, unless Zion extends the offering.
Each holder of a subscription right that fully exercises its Basic Subscription Privilege may also subscribe for additional shares (the "Over-Subscription Privilege") for pro rata allocation in the event that not all available shares are purchased pursuant to the stockholders' Basic Subscription Privilege (subject to certain limitations described in our prospectus relating to the rights offering).
is pleased to announce that, further to its December 10, 2013 press release and in accordance with the subscription agreement dated November 7, 2013, amended on December 6, 2013 between Orbite and Crede Capital Group, LLC ( Crede ), it has issued Series X Subscription Rights and Series Y Subscription Rights (the Subscription Rights ) to Crede upon the terms provided in the subscription agreement and summarized in the Corporation s amended and restated prospectus dated December 6, 2013.
Rights offering materials, including a prospectus and the subscription rights certificates, will be mailed on or about April 24, 2009 to eligible stockholders.
As previously announced, the Company s shareholders of record (the Record Date Holders ) as of May 15, 2013 (the Record Date ) received one non-transferable subscription right for each common share of the Company held by the shareholder as of the Record Date.