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Preemptive Right

Preemptive Right defined: A preemptive right is the right to acquire certain property or securities before any other person. Preemptive right generally refers to the right of shareholders to buy a new issuance of stock before it is offered to external investors so that their ownership is not diluted.

Above is a definition for “Preemptive Right” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.

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