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 ?
To the knowledge of Empire, insiders of Empire as a group subscribed for and received 1,312,985 Common Shares under the Basic Subscription Privilege and 1,762,467 Common Shares under the Additional Subscription Privilege.
In addition, the rights offering includes an over-subscription privilege, which entitles each rights holder that exercises its basic subscription privilege in full the right to purchase additional units that remain unsubscribed at the expiration of the rights offering, if any.
A total of 200,084,396 subscription receipts were subscribed for by rights holders pursuant to the basic subscription privilege attached to each Right.
In connection with the rights offering, 9,248,464 shares were issued to holders upon exercise of their basic subscription privilege (including 2.
7% of the voting power of its common stock, exercised his basic subscription privilege and his over-subscription privilege in full.
Investors who exercise their subscription privilege in full are allowed to over-subscribe for shares that remain unsubscribed at the expiry of the rights offering.
Following the allocation of shares to rightsholders exercising their basic subscription privilege, 202,652 shares of LVNTA were available for allocation among those who properly exercised their oversubscription privilege.