preemptive right

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Related to Subscription Rights: Pre-Emptive Rights

Preemptive right

Common stockholders' right to anything of value distributed by thecompany.

Preemptive Right

In stock, the ability of a shareholder to maintain the same percentage of ownership in a company should the company issue more stock by subscribing to a proportional number of shares at or below the market price. This protects the investor from devaluation of his/her shares if the company decides to hold a round of financing. The purchase of this proportional number of shares usually takes place before the new issue is offered to the secondary market, and must be exercised before a certain date (known as the expiration date) if the shareholder is to maintain the same percentage of ownership. It is also called a subscription right. See also: Anti-dilution provision.

preemptive right

A stockholder's right to keep a constant percentage of a firm's outstanding stock by being given the first chance to purchase shares in a new stock issue in proportion to the percentage of outstanding shares already held. Not all firms provide the preemptive right, which is more important to stockholders owning a significant part of a company. Also called subscription privilege. Compare privileged subscription. See also special subscription account.
References in periodicals archive ?
As outlined in the circular sent to shareholders on 28 August 2015, relating to the annual Subscription Right, all shareholders will benefit from a new Subscription Right in respect of all Ordinary Shares they hold on 3 October 2016 entitling them to subscribe for further new Ordinary Shares on 3 October 2016 at a price equal to the undiluted net asset value of an Ordinary Share on 2 October 2015.
Under the terms of the rights offering, the Company is planning to distribute to its stockholders, at no charge, one transferable subscription right for every 85.
As soon as practicable after the record date, Holdings expects to distribute subscription rights to the holders of its common stock as of the record date, subject to a registration statement becoming effective.
through the exercise of Subscription Rights should reduce the
In accordance with the terms and conditions of the Offering, the subscriptions made without subscription rights (secondary subscription) will be allocated per book-entry account in proportion to the number of subscription rights used as well as the number of Offer Shares subscribed for, and will be recorded on the subscriber s book-entry account directly as ordinary shares on or about 25 September 2014.
The subscription rights are transferable and have been approved by NASDAQ for trading on The Nasdaq Capital Market under the symbol "BIOFR" during the course of the rights offering.
The Series X Subscription Rights will be become exercisable the earlier of (i) the date of qualification of the underlying units by prospectus which date shall not be earlier than April 10, 2014 and (ii) July 11, 2014, and the Series Y Subscription Rights will first become exercisable on October 10, 2014.
Subscription Date exercise the Subscription Rights which shall not have
In general, under standard three day stock settlement procedures, persons who wish to purchase additional shares of the Company's common stock and receive the subscription rights applicable to those shares, or who wish to sell shares of the Company's common stock and not be entitled to the subscription rights as to the shares sold, would be required to effect the trade by close of trading on April 14, 2009.
2% of the basic subscription rights were exercised by holders of the subscription rights.
Trustee will exercise any unexercised Subscription Rights and sell all