Preemptive Rights Explained: Meaning, Law & Real Examples

Preemptive Rights

Introduction Imagine owning shares in a promising company—only to discover later that your ownership percentage has quietly shrunk because new shares were issued to other investors. Situations like this are exactly why preemptive rights exist. At its core, preemptive rights protect existing shareholders from unexpected dilution. When a company decides to issue new shares, these […]