preemptive right

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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 ?
Bankers explained that such financial products linking stock right, interest rate, and exchange rate refer to some portfolio (or structured) products, such as products linking stock rights, whose yield would be affected by swing of stock prices.
Scottish football, at club and international level, is a laughing stock right now.
Includes stock rights in which a corporation either reported (or reasonably expects to report) a financial expense due to the issuance of a stock right with an exercise price lower than the fair market value of the underlying stock at the grant date that was not timely reported on financial statements or reports for the period.
The investor's total basis in each share of stock acquired through the exercise of the stock right will be $38 per share.
Under the Proposed Regulations, modifications of a Stock Right to achieve the following results generally are not considered modifications that result in a new grant:
Incidentally, garden centres have a huge range of orchids in stock right now.
8808081 becomes IRS's policy, a contingent stock right to purchase P preferred stock, when distributed with stock in a B-type reorganization, would violate the solely-for-voting-stock requirement.
On the other hand, the language dealing with stock options in Notice 2005-1 (45) and the proposed regulations is very different, suggesting that unless there is no possibility during the life of the stock right for a reduction in the exercise price, such right will be treated as deferred compensation for Sec.
409A if issued with an exercise price that cannot fall below the fair market value (FMV) of the stock at the grant date, and the stock right does not contain any additional deferral feature.