preemptive-right

preemptive right

noun
a privilege given to an existing shareholder to buy a portion of a new stock issue at the offering price on a pro-rata per-share basis.

Origin:
1850–55

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Based on the Random House Dictionary, © Random House, Inc. 2014.
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WordNet
preemptive right

noun
the right granting to shareholders the first opportunity to buy a new issue of stock; provides protection against dilution of the shareholder's ownership interest 
WordNet® 3.0, © 2006 by Princeton University.
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