preemptive right

noun

1
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

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Cite this Entry

“Preemptive right.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/preemptive%20right. Accessed 25 Apr. 2024.

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