PREEMPTIVE RIGHT Definition

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PREEMPTIVE RIGHT is the right of a current stockholder to maintain the percentage ownership interest in the company by buying new shares on a pro rata basis before they are issued to the public.

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SHARPE RATIO, named after William P. Sharpe, is a measurement of portfolio trading performance. It is calculated by subtracting risk free rate from total portfolio return, then dividing by the standard deviation of the portfolio:Sharpe ratio = Total portfolio return - Risk free rate / Portfolio standard deviation.

MILLAGE is a rate (as of taxation) expressed in mills per dollar.

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