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.
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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
Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.
Translations
신주인수권
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Subscribers in the rights offering that included Vintage Capital Management LLC, subscribed for an estimated 100.9 common shares or 81.2% of the about 124.3m common shares available, as per their basic subscription privileges. Pursuant to the rights offering and the transactions contemplated by the standby purchase agreement between B&W and Vintage, Vintage also bought the remaining 23.4 common shares available in the rights offering under its backstop commitment.
Subscribers in the rights offering, including Vintage Capital Management, LLC, subscribed for approximately 100.9 common shares, or 81.2% of the approximately 124.3 million common shares available, pursuant to their basic subscription privileges. Pursuant to the rights offering and the transactions contemplated by the standby purchase agreement between B&W and Vintage, Vintage also purchased the remaining 23.4 common shares available in the rights offering pursuant to its backstop commitment.