preemptive right

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Definitions from WordNet

Noun preemptive right has 1 sense

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
--₁ is a kind of preemption, pre-emption

Definitions from the Web

Term: preemptive right

Description: A preemptive right refers to a shareholders' right to maintain their percentage of ownership in a company by purchasing additional shares before they are offered to the general public. It allows shareholders to protect their investment and maintain control over the company.

Sample sentences:

As a shareholder, John exercised his preemptive right by purchasing additional shares when the company decided to issue new stock.
The preemptive right gives existing shareholders the opportunity to invest in new shares at a discounted price before they are made available to outsiders.
When the company announced its plan to raise capital, shareholders eagerly awaited the exercise of their preemptive rights.

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