subscription right

Definition

The right of current shareholders to maintain their fractional ownership of a company by buying a proportional number of shares of any future issue of common stock. Most states consider preemptive rights valid only if made explicit in a corporation's charter. also called subscription privilege or preemptive right.

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Nearby Terms

subrogate
subscribe
subscription agreement
subscription price
subscription privilege
subscription right
subscription warrant
subsequent offering
subsidiary
subsidy
substance over form