Last Updated
:2025/11/24
preemptive right
( plural )
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(law) The right of shareholders to maintain a constant percentage of a company's shares by receiving a proportionate fraction of any new shares issued, thus preempting any dilution
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preemptive right
When the company announced a new funding round, Maria exercised her preemptive right to purchase enough shares to keep her ownership percentage unchanged.
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When the company announced a new funding round, Maria exercised her preemptive right to purchase enough shares to keep her ownership percentage unchanged.
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