Definition of "Preemptive right"

Right of a current stockholder to maintain the percentage ownership in a real estate company by purchasing new shares on a proportionate basis before they are issued to the public. It allows existing stockholders to keep the value and control they presently enjoy. The new shares may be issued to the current stockholders at a lower price than the going market price. Further, brokerage commissions do not have to be paid.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Structures added to framing to increase overall strength and stability. Various types of bracing include cables, rods, struts, ties, shores, additional framing, etc. ...

Demise indicates the act of “granting a lease of property” in legal terms. A demising clause refers to a particular provision of housing requirements based on family size, ages, ...

A will where the decedent's nomination of an executor/executrix is flawed, requiring an administrator to be appointed by the court and annexed to the will. ...

Analysis of a real estate sales data to appraise real estate values. Sources of real estate sales data used in the market data approach include the official records of deeds and leases ...

loan that is not secured by a mortgage on a specific property. It is backed only by the borrower's credit rating. Unsecured loan are typically short term. The disadvantages of this kind of ...

Individual or business transferring a right or benefit to another person or business. ...

Arrangement the insured and insurer share on a proportional payment for a loss. ...

The term after-tax rate of return calculates an investor’s net return after income taxes. The calculation is used by many businesses and investors to determine their real earnings. ...

An individual's bringing a legal action against a defendant. The plaintiff wants relief from the judge against a defendant. An example is investors in a real estate investment trust (REIT) ...

Popular Real Estate Questions