Subscription Price

Subscription Price
1. A static price at which existing shareholders can participate in a rights offering conducted by a public company so they may retain their proportional ownership of the business. The subscription price will be the same for all shareholders and typically less than the current market price of the underlying stock.

2. Subscription price may also refer to the exercise price for warrant holders in a particular stock. Warrants may be issued at different times by the company along with debt offerings, so subscription prices may vary slightly from one owner to another.


Rights and warrants offerings are less common ways to raise capital than through a secondary offering of stock, and may signal a lack of demand for shares in the open market. Issuing rights encourages more long-term ownership of the company, as existing shareholders are increasing their investment in the company.

A rights offering may also come with an oversubscription privilege that allows existing shareholders to pick up any extra rights to shares not claimed by other shareholders. Rights offerings tend to happen pretty quickly, as the subscription price is static and needs to be relevant to the current market price for shareholders to be interested in the deal.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • subscription price — noun (stock exchange) The price at which members of the public may subscribe for shares • • • Main Entry: ↑subscribe …   Useful english dictionary

  • Subscription price — Price that the existing shareholders are allowed to pay for a share of stock in a rights offering. The New York Times Financial Glossary …   Financial and business terms

  • subscription price — Price that current shareholders pay for a share of stock in a rights offering. Bloomberg Financial Dictionary …   Financial and business terms

  • subscription price — /səb skrɪpʃən praɪs/ noun a price at which new shares in an existing company are offered for sale …   Dictionary of banking and finance

  • Subscription price —   An ISO term. The currency code and the money amount to be paid to acquire the smallest full unit in the new issue. 3a15d …   International financial encyclopaedia

  • Subscription business model — Subscription redirects here. For the subscription process for shares etc., see Subscription (finance). The subscription business model is a business model where a customer must pay a subscription price to have access to the product/service. The… …   Wikipedia

  • subscription — Agreement to buy new issue of securities. Bloomberg Financial Dictionary Acquisition of shares or units in a fund by an investor. NYSE Euronext Glossary * * * subscription sub‧scrip‧tion [səbˈskrɪpʆn] noun 1. [countable] an amount of money you… …   Financial and business terms

  • Subscription (finance) — Subscription refers to the process of investors signing up and committing to invest in a financial instrument, before the actual closing of the purchase. Contents 1 New issues 1.1 Subscription period 1.2 Allotment 2 …   Wikipedia

  • subscription agreement — An agreement between an investor, a company and its directors setting out the terms on which the company will issue shares and other securities to the investor and containing warranties, restrictive covenants and other provisions regulating the… …   Law dictionary

  • subscription rights — n. The right of a person who already holds shares in a corporation to buy at a favorable price additional shares of the same type of stock. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell.… …   Law dictionary

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