subscription right
- noun
- Jargon
:
derecho de suscripción
- The company granted a subscription right to shareholders, allowing them to purchase common stock at a set price.
Examples
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Each existing shareholder exercised their subscription right to buy additional shares during the new issue.
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Did you receive your subscription rights in the mail?
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By using his subscription right, he maintained his percentage of ownership in the firm.
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Every shareholder has a subscription right to buy new shares.
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Each existing shareholder exercised their subscription right to buy additional shares during the new issue.
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By using his subscription right, he maintained his percentage of ownership in the firm.
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The company granted a subscription right to shareholders, allowing them to purchase common stock at a set price.
Synonyms
A right that lets current shareholders buy new shares first to keep their share
A document that lets the person who has it buy company shares at a set price before a date
A paper that lets you buy a company's shares at a fixed price before a date
Surface Forms
Morphology
The compound literally reads as a 'right' related to a 'subscription', so a B1 learner who knows both words can infer a general legal entitlement to subscribe to something. However, the specific financial sense—an existing shareholder's pre-emptive right to buy new shares before public offering—is a specialized, domain-specific meaning not fully predictable from the common senses of 'subscription' and 'right', so full comprehension requires prior exposure or background knowledge.
Etymology
Subscription right comes from two simple ideas: subscription meaning to 'subscribe' or sign up, and right meaning permission to act. Think of being offered extra slices of a cake before other people; taking them keeps your share the same, so the phrase means permission to buy new shares before the public to keep your 'ownership'.
