Preemptive right
Preemptive right is the right of the stockholder to purchase additional shares of stock to maintain a proportionate interest when the corporation issues additional stock.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Preemptive right. The right of the stockholder to purchase additional shares of stock to maintain a proportionate interest when the corporation issues additional stock.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
