Definitions for "Preemptive Rights"
These give an existing shareholder the opportunity to purchase or subscribe for a proportionate part of a new issue of shares before it is offered to other persons. This allows existing shareholders to maintain their current ownership percentage in the corporation without such percentage becoming “diluted” through the issuance of new or additional shares to others.
Rights that give existing shareholders the chance to buy part of a new issue of shares before the general public can, thus protecting them from dilution of value and control
The rights of existing stockholders granting them first opportunity to acquire new issues of stock.