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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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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...

The greatest discovery of my generation is that man can alter his life simply by altering his attitude of mind. - James Truslow Adams

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