The company’s right to purchase stock in future offerings on the same terms as other investors. Usually, the right is designed to enable investors to maintain their percentage ownership of the company by purchasing a pro-rata share of all new stock sold by the company. Investors also often require company founders to grant first refusal rights on shares the founders own. Also sometimes called Preemptive Rights or Pro-Rata Rights.
The company’s right to purchase stock in future offerings on the same terms as other investors. Usually, the right is designed to enable investors to maintain their percentage ownership of the company by purchasing a pro-rata share of all new stock sold by the company. Investors also often require company founders to grant first refusal rights on shares the founders own. Also sometimes called Preemptive Rights or Pro-Rata Rights.