Preemptive Offer
Content
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.
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.
