preemptive right

(redirected from Subscription privilege)
Also found in: Thesaurus, Legal, Financial.

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
Mentioned in ?
References in periodicals archive ?
The Rights Offering will include an additional subscription privilege entitling holders of Rights who have fully exercised their Rights to subscribe for additional common shares, if available, that were not otherwise subscribed for under the Rights Offering.
Under the terms of the Rights Offering, all record holders of the Company's common stock as of 5:00 p.m., Eastern Daylight Time, on April 19, 2016, the record date for the Rights Offering, will receive, at no charge, one non-transferable subscription right for each share held as of the record date ("basic subscription privilege").
A total of 200,084,396 subscription receipts were subscribed for by rights holders pursuant to the basic subscription privilege attached to each Right.
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.
The company will issue 24,183,651 rights shares as additional subscription privilege for the company shareholders.
Shareholders who exercise all of their rights will also be entitled to acquire additional common shares from an additional subscription privilege to be provided under the offering,
All record holders of rights that wish to participate in the rights offering must deliver a properly completed and signed subscription rights statement, together with payment of the subscription price for both basic subscription rights and any over subscription privilege election, to the Subscription Agent, to be received before 5:00 PM Eastern Time on March 1.
Icahn, Motricity's largest stockholder, who as of July 23, 2012 beneficially owned approximately 16.5% of the company's outstanding securities and controlled approximately 14.7% of the voting power of its common stock, exercised his basic subscription privilege and his over-subscription privilege in full.