Drag-Along Rights

What does it Mean? A right that enables a majority shareholder to force a minority shareholder to join in the sale of a company. The majority owner doing the dragging must give the minority shareholder the same price, terms, and conditions as any other seller.
 
Investopedia Says... This is designed to protect the majority shareholder. Because some buyers are only looking to have complete control of a company, drag-along rights help to eliminate minority owners and sell 100% of a company's securities to the buyer.

Terms Related Links

Tag-Along Rights

Terms Related Links
Dragons, Samurai Warriors And Sushi On Wall Street - From samurai to sushi, there's no denying the East Asian influence on investing terminology.



add investopedia foot
www.investopedia.com