In the context of right shares, bring out the meaning of pre-emptive r – InterviewSolution

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1.	In the context of right shares, bring out the meaning of pre-emptive right.
Answer» A privilege extended to select shareholders of a corporation that will give them the right to purchase additional shares in the company before the general public has the opportunity by the event there is a seasoned offering. A preemptive right is written in the contract between the purchaser and the company but does not function like a put option.

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