| 释义 |
DictionarySeepreemptive rightLegalSeePreemptive Rightsubscription privilege
Subscription privilegeThe right of current shareholders of a corporation to buy newly issued shares before they are available to the public.Preemptive RightIn stock, the ability of a shareholder to maintain the same percentage of ownership in a company should the company issue more stock by subscribing to a proportional number of shares at or below the market price. This protects the investor from devaluation of his/her shares if the company decides to hold a round of financing. The purchase of this proportional number of shares usually takes place before the new issue is offered to the secondary market, and must be exercised before a certain date (known as the expiration date) if the shareholder is to maintain the same percentage of ownership. It is also called a subscription right. See also: Anti-dilution provision.subscription privilege See preemptive right. |