Subscription Right
/ˌsʌbskrɪpʃən raɪt/
Definitions
- (n.) A legal entitlement granting a shareholder the option to purchase additional shares in a corporation before the shares are offered to the public, typically to maintain proportionate ownership.
The company issued subscription rights to its existing shareholders to buy new shares at a discounted price.
Forms
- subscription right
- subscription rights
Related terms
See also
Commentary
Subscription rights are often used in corporate finance to protect shareholders from dilution; clear terms are essential to define exercise period and price.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.