Other Free Encyclopedias » Law Library - American Law and Legal Information » Free Legal Encyclopedia: Plc (public limited company) to Prerogative of mercy

Preemptive Right

issue proportionate shares share

The privilege of a stockholder to maintain a proportionate share of the ownership of a corporation by purchasing a proportionate share of any new stock issues.

In most jurisdictions, an existing stockholder has the right to buy additional shares of a new issue to preserve EQUITY before others have a right to purchase shares of the new issue.

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