What is a preferential subscription right?
The preferential subscription right is a right attached to the share. In case of capital increase, this right gives its holder a priority to subscribe to a number of new shares proportional to the number of shares that he/she holds. This right is tradable on the market. There is no obligation to exercise it and a shareholder can sell it.
Related Questions
- If a preferential candidate is being rehired into a lower classification than what he/she was laid off from, does the employee have a right to refuse the position?
- Does a person have any preferential right to obtain a mineral concession for the area over which he has surface rights?
- What is a preferential subscription right?
