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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

 

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