SIE: Preemptive Rights

Taken from our SIE Online Guide

Preemptive Rights

If a corporation decides to issue additional common stock, current stockholders may have the right to maintain their share of ownership by purchasing a proportionate amount of the new issue before it is offered to the public. When it is granted, this is called a stockholder’s preemptive right. In order to meet this obligation to existing shareholders, companies carry out a rights offering in which the current shareholders are offered enough new stock to keep their

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SIE: Preemptive Rights

Taken from our SIE Online Guide

Preemptive Rights

Since you're reading about SIE: Preemptive Rights, you might also be interested in:

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