Series 66: Preemptive Rights

Taken from our Series 66 Online Guide

Preemptive Rights

If a corporation decides to issue additional common stock, current stockholders may have the right to maintain their share of ownership by purchasing a proportionate amount of the new issue before it is offered to the public. This is a stockholder’s preemptive right. A preemptive right serves as anti-dilution protection for common stockholders—they have the right to protect their ownership f

Since you're reading about Series 66: Preemptive Rights, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 66
Please Enable Javascript
to view this content!