preemptive right

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Related to Preemptive Rights: Right of first refusal, Drag Along Rights

preemptive right

n.
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.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.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 interest
preemption, pre-emption - the right to purchase something in advance of others
Translations
신주인수권
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References in periodicals archive ?
Existing Pure Foods shareholders will not be allowed to exercise their preemptive rights under the share swap using the newly created shares, at a price yet to be finalized.
Retirement Plan - were requested to waive their preemptive rights to the offering to allow the entry of new investors.
The Company will now move ahead to offer existing shareholders preemptive rights to subscribe for one new share for every three existing shares held, with each new share receiving a detachable warrant to purchase a further share in the future (the Offering).
Additionally, TD will purchase USD 400m in new common equity (11m shares) from TD Ameritrade in connection with the proposed transaction, pursuant to its preemptive rights.
Kungsleden AB (STO:KLED) announced on Thursday that its board of directors has resolved, subject to the approval by an Extraordinary General Meeting, to conduct a rights issue of approximately SEK1,600m with preemptive rights for Kungsleden's shareholders.
The club lost an attempt to disapply preemptive rights for the second year running.
8220;Certain mechanisms are in place to provide trademark holders with preemptive rights in every new extension, but brand owners must be proactive and know their rights, or risk costly domain name recovery processes.
4 April 2013 -- Ohio-USA-based bank holding company Farmers National Banc Corp (NASDAQ: FMNB) said it is seeking shareholders support for a move by management and firm's board to increase the company's authorised shares and eliminate preemptive rights.
Meanwhile, Vedomosti reported this morning (4 June) that according to a source in AAR, preemptive rights are included in the agreement, while a source at BP denied that such a clause exists.
GOL Linhas Aereas Inteligentes SA (NYSE: GOL) (BM&FBOVESPA: GOLL4), a low-cost and low-fare airline in Latin America, informed its shareholders and the market, on Thursday that the period for exercise of preemptive rights upon the subscription of shares to be issued in connection with the capital increase of the company ended on 26 January 2012.
The resolution of all the various preemptive rights may take up to 90 days.
6 million shares, through an exercise of preemptive rights.