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LSDefine

Simple English definitions for legal terms

subscription privilege

Read a random definition: unitas actus

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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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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