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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
Corporation
Distributed
Right
Shareholders
Shares
 
 Related Terms
 Right
Right or rights
Sub right
Subscription right
Subscription right certificate
Transferable put right
Voting right

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