Pre-emption Rights
Pre-emption Rights give existing shareholders the right to buy additional shares before the company offers them to new investors, protecting against dilution of ownership.
Benefits
Pre-emption rights allow existing shareholders to buy new shares before they are offered to others, preventing dilution.
Frequently Asked Questions
What are the pre-emption rights of existing shareholders?
Pre-emption rights allow existing shareholders to buy additional shares before the company offers them to new investors.
How does the preemptive right protect shareholders from dilution?
Preemptive rights allow shareholders to buy additional shares before new investors, maintaining their ownership percentage.
Do pre-emptive rights enable stockholders to purchase additional shares before new shares are offered to the public?
Yes, pre-emptive rights allow stockholders to buy additional shares before they are offered to the public.
Key Takeaway
Pre-emption Rights allow existing shareholders to buy new shares before others.