preemptive right

Definition of "preemptive right"
  1. A shareholder's priority to purchase new shares from the same corporation in relation to their current holding before the shares are offered to others
How to use "preemptive right" in a sentence
  1. The preemptive right enabled the major shareholder to maintain control over the corporation.
  2. Upon releasing new shares, the company acknowledged investors' preemptive right.
  3. Exercising his preemptive right, the shareholder purchased additional shares.

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