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LSDefine

Simple English definitions for legal terms

subscription privilege

Read a random definition: nominal damages

A quick definition of subscription privilege:

Subscription Privilege: A special right given to shareholders that allows them to buy new shares of a company before they are offered to the public. This helps prevent the shareholder's ownership from being diluted. The shareholder must exercise this right within a certain time period, usually 30 to 60 days. This is also known as a preemptive right or subscription right.

A more thorough explanation:

Subscription privilege is also known as preemptive right. It is a privilege given to shareholders to purchase newly issued stock before it is offered to the public. This privilege is given to prevent dilution of the shareholder's ownership interest. The shareholder can purchase the new shares in an amount proportionate to their current holdings. The right must be exercised within a fixed period, usually 30 to 60 days.

Suppose a company has 100,000 outstanding shares, and a shareholder owns 10,000 shares. The company decides to issue 10,000 new shares. The shareholder has the right to purchase 1,000 new shares (10% of the new shares) before they are offered to the public. If the shareholder exercises their subscription privilege, they will own 11,000 shares (10% of the total outstanding shares).

This example illustrates how subscription privilege works. The shareholder has the right to maintain their ownership percentage by purchasing new shares before they are offered to the public.

subscription contract | subscription right

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13:23
saw that, crazy that she cant just hold the fucker in for a day longer
LMFAO
babycat
13:23
gulc going to hell I’m so serious
glovediedthisishismom
13:24
thats definetly horsey on an alt
glovediedthisishismom
13:24
no way any professor did that
13:25
thrifted a vintage burberry suit today and feeling unstoppable
Dkk
13:26
Nice
glovediedthisishismom
13:26
im in the field like a defensive lineman im always in saks 💯
1a2b3c4d26z
13:26
That's awesome
1a2b3c4d26z
13:26
real ones shop at bergdorf
13:28
real ones shop at YMH
triplethread
13:28
i missed another fordham wave
triplethread
13:28
mamas getting denied
JumpySubsequentDolphin
13:29
the bergdorf on 5th Ave in NYC is so
JumpySubsequentDolphin
13:29
it feels like home
Dkk
13:29
I'm at your mommas house rn: https://x.com/Mansavelli_/status/1648073454665572352
triplethread
13:29
im addicted to reacting to all of the decisions
triplethread
13:29
with the emojis
HopefullyInLawSchool
13:29
I shop at Joe
HopefullyInLawSchool
13:29
Joe's
glovediedthisishismom
13:30
i shop at tawget
glovediedthisishismom
13:30
im dawk gawthic maga
triplethread
13:30
i shop at giant eagle
ForDizzyDJoy
13:31
How did i miss Fordham and American’s wave and I applied in september 🙃
13:33
Lol UC Davis took me of ED and put me in RD
13:34
surprised I didnt get straight denied
HopefullyInLawSchool
13:34
they emailed you/
HopefullyInLawSchool
13:34
?
13:35
@HopefullyInLawSchool: Yea, I just got it
i just want a cornell ii :(
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