Glossary

Subscription right (pre-emption right)

The right of existing shareholders to buy new shares first, in proportion to their holding. Rights can often be sold; unused ones expire.

Comparison Four old shares at 50 and one new share at 30 give five shares at 46. Old shares 4 at 50 = 200 New share 1 at 30 = 30 After 5 shares = 230 46 each

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