Preemptive right

• Common stockholder's right to anything of value distributed by the company.

• Allows common shareholders to maintain their proportionate ownership in the corporation when new shares are issued.

 Embedded terms in definition
 Common stock
 Related Terms
Right or rights
Sub right
Subscription right
Subscription right certificate
Transferable put right
Voting right

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Beware of fraud originating in phone messages and faxes: FDIC Consumer News has warned before about crooks who call or e-mail consumers and pretend to be legitimate companies or government agencies wanting people to "verify" or "resubmit" (divulge) confidential information such as bank account or credit card numbers as well as Social Security numbers, passwords and personal identification numbers. Here are variations to know about. More...

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