Define: Preemptive Rights

Business, Legal & Accounting Glossary

Definition: Preemptive Rights



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Full Definition of Preemptive Rights


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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https://payrollheaven.com/define/preemptive-rights/
Modern Language Association (MLA):
Preemptive Rights. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 07, 2020 https://payrollheaven.com/define/preemptive-rights/.
Chicago Manual of Style (CMS):
Preemptive Rights. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/preemptive-rights/ (accessed: April 07, 2020).
American Psychological Association (APA):
Preemptive Rights. PayrollHeaven.com. Retrieved April 07, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/preemptive-rights/

Definition Sources


Definitions for Preemptive Rights are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 25th March, 2020