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 ?
A total of 14,035,706 common shares were issued under the basic subscription privilege and a total of 10,715,725 common shares were issued under the additional subscription privilege, resulting in the total number of issued and outstanding common shares of the Company currently being 123,757,157 common shares.
Each holder of a subscription right that fully exercises its Basic Subscription Privilege may also subscribe for additional shares (the "Over-Subscription Privilege") for pro rata allocation in the event that not all available shares are purchased pursuant to the stockholders' Basic Subscription Privilege (subject to certain limitations described in our prospectus relating to the rights offering).
7% of the voting power of its common stock, exercised his basic subscription privilege and his over-subscription privilege in full.
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.
Pursuant to the basic subscription privilege, approximately 138.
The Company will distribute to its stockholders as of the record date, non-transferable subscription rights, each of which will include (i) a basic subscription privilege and (ii) an over-subscription privilege that entitles the holder (other than Matador Capital Partners, L.
Approximately 162,376,918 Subscription Receipts were purchased pursuant to the exercise by holders of their Basic Subscription Privilege (as defined in the Prospectus) and an additional 50,045,218 Subscription Receipts were subscribed for pursuant to the exercise by holders of the Additional Subscription Privilege (as defined in the Prospectus).
A shareholder that fully exercises its basic subscription privilege in the rights offering as described in the Prospectus Supplement may exercise its over-subscription privilege and subscribe for additional shares up to the total number of unsubscribed shares remaining after the exercise of the basic subscription privilege by the standby purchasers and that shareholder, multiplied by such shareholder's ownership percentage of Particle Drilling's outstanding common stock at the record date.