Preemptive Offer
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.
Benefits
A preemptive offer gives existing shareholders the opportunity to buy additional shares before new investors, preventing dilution.
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.
Key Takeaway
Preemptive Offer gives existing shareholders the opportunity to buy additional shares first.