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.
The privilege of a stockholder to maintain a proportionate share of ownership by purchasing a proportionate share of any new stock issues.The purpose of such rights is to protect shareholders from dilution of value and control when new shares are issued.
An investor's right to purchase the investor's pro rata (i.e., proportionate) share of any additional securities issued by a company.
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. 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.
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. The purpose of these rights is to protect shareholders from dilution of value and control when new shares are issued. These rights may be limited or denied.
The right of a shareholder to subscribe ratably for his or her proportion of any additional shares issued by a corporation.
Rights that give existing owners the ability to maintain their percentage ownership. Owners with preemptive rights are offered their pro rata percentage of newly issued shares before those shares can be offered to anyone else. If an owner with preemptive rights currently owns 10% of the shares, he/she will be offered up to 10% of the newly issued shares.
This is the right of an existing shareholder to buy additional shares of stocks.
Rights enjoyed by existing shareholders to purchase additional shares of stock in the same proportion to their existing holdings.