Preemptive right
Common stockholder's right to anything of value distributed by the company. ...
preemptive rights
right specified in the charter of a corporation, granting to existing shareholders the first opportunity to buy a new issue of stock.
Referring Terms: ...
Preemptive Rights
Definition: Right that grants existing shareholders the first opportunity to purchase a new issue of stock.
Preemptive Right
A right given to shareholders that allows them to purchase shares of a new issue before it is offered to non-shareholders. This allows shareholders to retain the same percentage of ownership in a corporation.
Preemptive Rights. An investor's right to purchase the investor's pro rata (i.e., proportionate) share of any additional securities issued by a company.
Preemptive Right
A right, sometimes required by the issuer's corporate charter, by which current owners must be given the opportunity to maintain their percentage ownership if additional shares of the same class are issued.
Preemptive Right
The right of a stockholder to maintain proportional ownership of a firm by acquiring a portion of new shares that are being sold to the public.
Preferred Stock ...
Preemptive Rights Clause
A term in a company's charter that states that if a company wishes to issue additional new shares they must give the right of first refusal to the existing shareholders.
Preemptive Right The right of a shareholder to purchase newly issued shares of the company before the general public.
Preemptive right: A corporate shareholder's right to maintain his share of ownership when new shares are sold through a rights offering.
(3) Preemptive Rights
If a company plans to issue new stocks, existing stockholders have the rights to subscribe to new stocks, often at lower prices, before they are issued to the public.
(4) Voting Rights ...
If a corporation's charter has a preemptive rights clause, before the company offers a new issue of securities to the public, it must offer existing shareholders the opportunity to buy new shares of stock in proportion to the number they already own.
preemptive right The right of current shareholders to maintain their fractional ownership of... preference shares A class of ownership in a corporation that has a higher claim on the assets...
Of course, there is no obligation to do this, but they have what is known as preemptive rights.
See also: Articles of Incorporation, Dividend, Par Value, Preemptive Right
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NASD Rule 2790 restricted persons states that a restricted person may not own more than 10 of a stock How does this effect a stockholders preemptive rights to maintain their share? Read answer...
Does the NASD still exist? Read answer...
Method of charging interest in which the annual interest is either deducted from the face amount of the loan when the funds are distributed or is added to the total amount and divided into the regular payments.
Preemptive right ...
Alternative techniques to the underwriting via syndicated counterparties are the bought deal for the underwriting of bonds, the auction process and the preemptive rights offering.
Bibliography
Fabozzi F., Modigliani F., Jones F.
Preemptive rights: A shareholder right that allows shareholders the opportunity to maintain their per¬centage of ownership of the corporation in the event that additional shares are offered for sale.
 See also: Expense, Stock Dividend, Banks, Preferred share, Values
  
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