| 释义 |
preemptive right
preemptive rightn. The right of a company's existing stockholders to purchase enough shares to maintain their overall ownership percentage in the event of a new stock issue.Thesaurus| Noun | 1. | preemptive right - the right granting to shareholders the first opportunity to buy a new issue of stock; provides protection against dilution of the shareholder's ownership interestpreemption, pre-emption - the right to purchase something in advance of others |
Translations
Preemptive Right
Related to Preemptive Right: classified stockPreemptive RightThe 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 rightn. 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) preemptive right
Preemptive rightCommon stockholders' right to anything of value distributed by thecompany.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.preemptive right A stockholder's right to keep a constant percentage of a firm's outstanding stock by being given the first chance to purchase shares in a new stock issue in proportion to the percentage of outstanding shares already held. Not all firms provide the preemptive right, which is more important to stockholders owning a significant part of a company. Also called subscription privilege. Compare privileged subscription. See also special subscription account.preemptive right
Related to preemptive right: classified stockWords related to preemptive rightnoun the right granting to shareholders the first opportunity to buy a new issue of stockRelated Words |