Business, Legal & Accounting Glossary
Rights delineated in the articles of incorporation granting shareholders the first opportunity to buy a new issue of stock in proportion to their current equity percentage. The shareholder has the right to buy the new issue of stock, but is not required to make the purchase. If the shareholder elects not to exercise this right, the shares can be sold on the open market.
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Definitions for Preemptive Rights are sourced/syndicated and enhanced from:
This glossary post was last updated: 25th March, 2020