preemptive right

noun

Legal Definition of preemptive right

2 : the right of a shareholder to buy shares of newly issued stock in proportion to existing holdings before a public offering is made in order to prevent dilution of ownership interest or seizure of majority control by management

Learn More about preemptive right

Cite this Entry

“Preemptive right.” The Merriam-Webster.com Legal Dictionary, Merriam-Webster Inc., https://www.merriam-webster.com/legal/preemptive%20right. Accessed 18 January 2020.

More from Merriam-Webster on preemptive right

Britannica English: Translation of preemptive right for Arabic Speakers

Comments on preemptive right

What made you want to look up preemptive right? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

experienced by way of someone else

Get Word of the Day daily email!

Test Your Vocabulary

The Eponym Quiz

  • rubens painting
  • Which is the best synonym of bowdlerize?
Spell It

Can you spell these 10 commonly misspelled words?

TAKE THE QUIZ
Add Diction

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!