|
Definition of Preemptive right
1. 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.
Definition of Preemptive right
1. Noun. (legal) The right of shareholders to maintain a constant percentage of a company's shares by receiving a proportionate fraction of any new shares issued, thus preempting any dilution ¹
¹ Source: wiktionary.com