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Claw Back
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Claw Back occurs if a company makes a share issue that isn't a straightforward rights issue. The existing shareholders have the right to buy back a proportion of the new shares already placed with subscribing investors.
It's a device used by companies wanting to attract new investors while preserving some of the rights of their existing shareholders.
See Also: Online share dealing service Stockmarket Centre
Last Updated: May 2007 © Moneyextra.com
Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.
