Preemptive Offer

Definition

A Preemptive Offer is an offer made to existing shareholders giving them the opportunity to buy additional shares before the company offers them to new potential investors.

Usage and Context

A preemptive offer lets existing shareholders buy additional shares before the public.

Frequently Asked Questions

What is a preemptive right quizlet?
Preemptive rights give existing shareholders the opportunity to buy new shares before they're offered to new investors.

What is a preemptive rights offering?
A preemptive rights offering allows existing shareholders to buy new shares before they are offered to new investors.

What is a pre-emption offer?
A pre-emption offer gives existing shareholders the right to buy new shares before they are offered to new investors.

Benefits

A preemptive offer gives existing shareholders the opportunity to buy additional shares before new investors, preventing dilution.

Conclusion

Preemptive Offer gives existing shareholders the opportunity to buy additional shares first.