Subscription price

Subscription price,

Definition of Subscription price:

  1. A subscription price is a static price at which existing shareholders can participate in a rights offering that a public company conducts. Shareholders participate so they are able to 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. The term may also refer to the exercise price for warrant holders in a particular stock. A company may issue warrants at different times, along with debt offerings. Subscription prices may vary slightly from one owner to another.

  3. Price at which the current stockholders (shareholders) of a firm are authorized to buy its common stock (ordinary shares) in a rights issue.

  4. The price at which a book, periodical, etc., is offered to subscribers.

How to use Subscription price in a sentence?

  1. The new shares are usually available at a discount to the market price and are available on a date in the future, after the announcement.
  2. Rights are typically transferable, meaning the holders of the rights can sell them in the open market.
  3. Companies offer existing shareholders securities called "rights," which allow them to buy more new shares in the company.
  4. The discounted price that shareholders are offered on the additional new shares is called the "subscription price.".
  5. Companies offer investors this opportunity as a way to allow them to add to their holdings of the stock but at a discount price.

Meaning of Subscription price & Subscription price Definition