preemptive right (Meaning)
preemptive right (n)
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
Synonyms & Antonyms of preemptive right
No Synonyms and anytonyms found
preemptive right Sentence Examples
- Shareholders have a preemptive right to newly issued shares, ensuring their proportionate ownership.
- The company's bylaws grant stockholders preemptive rights to prevent dilution of their ownership.
- The preemptive right allows shareholders to maintain their proportional interest in the company.
- Investors who hold preemptive rights can purchase additional shares before they are offered to the general public.
- The preemptive right is designed to protect existing shareholders from being unfairly diluted.
- Companies may choose to waive preemptive rights in certain circumstances, such as raising capital from strategic investors.
- Preemptive rights can be forfeited if the shareholder does not exercise them within a specified time frame.
- The value of preemptive rights can fluctuate depending on market conditions and the company's financial situation.
- Companies may grant preemptive rights to different classes of shareholders, with varying levels of priority.
- Exercising preemptive rights can have tax implications, so shareholders should carefully consider their options.
FAQs About the word 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 intere
No synonyms found.
No antonyms found.
Shareholders have a preemptive right to newly issued shares, ensuring their proportionate ownership.
The company's bylaws grant stockholders preemptive rights to prevent dilution of their ownership.
The preemptive right allows shareholders to maintain their proportional interest in the company.
Investors who hold preemptive rights can purchase additional shares before they are offered to the general public.
