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.
Related Software
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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.
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