Subscription right

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Related to Subscription right: preemptive right, Subscription price

Subscription right

Preemptive Right

In stock, the ability of a shareholder to maintain the same percentage of ownership in a company should the company issue more stock by subscribing to a proportional number of shares at or below the market price. This protects the investor from devaluation of his/her shares if the company decides to hold a round of financing. The purchase of this proportional number of shares usually takes place before the new issue is offered to the secondary market, and must be exercised before a certain date (known as the expiration date) if the shareholder is to maintain the same percentage of ownership. It is also called a subscription right. See also: Anti-dilution provision.

subscription right

See right.

Subscription right.

If a corporation's charter has a preemptive rights clause, before the company offers a new issue of securities to the public, it must offer existing shareholders the opportunity to buy new shares of stock in proportion to the number they already own.

That obligation is known as a subscription right, or a rights offering, and allows you to maintain the same percentage of ownership you had before the new issue.

Usually you receive one right for every share you already own, although the number of rights you need to buy a share depends on the number of outstanding shares in relation to the number in the proposed new issue.

Rights are transferable, and may be traded on the secondary market. For example, if you don't wish to purchase additional shares, you may choose to sell your rights.

If you need additional rights to make a purchase, you may buy them. Rights have expiration dates, so you typically must act promptly to take advantage of the offer.

References in periodicals archive ?
A copy of the Company's Articles of Incorporation which contains full details of shareholders' Subscription Rights can be found at the Company's website (www.
These forward-looking statements include, but are not limited to, statements about the rights offering, the terms of the rights offering, the dates on which actions relating to the rights offering are expected to occur, the listing of the subscription rights on the NASDAQ, future trading of the common stock of the Company and other statements that describe the Company's plans.
As soon as practicable after the record date, Holdings expects to distribute subscription rights to the holders of its common stock as of the record date, subject to a registration statement becoming effective.
Rights offering materials, including a prospectus supplement (and accompanying base prospectus) and other items necessary to exercise the subscription rights, will be mailed on or about June 18, 2010 to eligible shareholders.
Subscription Price is calculated, the Subscription Right will allow
The subscription rights are transferable and have been approved by NASDAQ for trading on The Nasdaq Capital Market under the symbol "BIOFR" during the course of the rights offering.
The obligations of Crede under the Subscription Rights are subject to several conditions, including obtaining certain regulatory approvals, including TSX approval, and approval of the Corporation s shareholders prior to the exercise of the Series Y Subscription Rights.
exercise of the basic subscription right to the subscription agent, American Stock Transfer & Trust Company, LLC, by no later than 5:00 p.
The shareholders of Julius Baer will receive one subscription right for every registered share they hold on 9 October 2012 (after market close).
As previously announced in a press release issued by Caesars on October 3, 2013, each stockholder of Caesars as of the close of business on October 17, 2013 (the "Record Date") will be issued, at no charge, one non-transferable subscription right for each whole share of Caesars common stock owned by that stockholder as of the close of business on the Record Date.
In addition, each holder of Rights who exercises their Basic Subscription Right in full will be eligible to subscribe (the "Over-Subscription Privilege"), at the same Subscription Price of $6.
Each holder of record as of the close of business on the Record Date will receive one subscription right for each share of the Common Stock owned at the close of business on the Record Date.