Pre-Emption Rights

Pre-Emption Rights
Pre-emption rights in UK company law give existing shareholders the first opportunity to buy new shares before they are offered to others, ensuring their ownership percentage remains unchanged.
Rights Issue
A method by which listed companies on a stock exchange raise new capital by offering new shares to existing shareholders. This concept is based on pre-emption rights, ensuring existing shareholders can purchase new shares proportionally to their existing holdings.

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