In
mergers and acquisitions, the right of
shareholders who object to being acquired to demand a fair
price for their
shares, as determined by a court. In theory, this guarantees that shareholders are adequately compensated for being overridden on the merger or acquisition. These shareholders may elect to have their shares purchased by the acquiring
corporation at the price set by the court. In the United States, most states grant appraisal rights in their regulatory statutes.