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Preemptive Right


Definition of "Preemptive right"

Christine   Altamuro
  Keller Williams Realty

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.



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