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Investments glossary

Dissenters’ Rights

Under various forms of state legislation, dissenting shareholders of a corporation are entitled to receive a cash payment for the fair value of their shares, in the event of a share-for-share merger or acquisition (M&A) to which the shareholders do not consent. Dissenters’ rights allow dissenting shareholders an easy way out of the company if they do not want to be a part of the merger.

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