Drag-Along Rights

Filed Under » Stocks

	Definition of 'Drag-Along Rights' 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 explains 'Drag-Along Rights' 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.

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