A subscription right or privilege is best defined as:
A) the right of current shareholders to maintain their fractional ownership of a company by buying a proportional number of shares of any future issue of common stock.
B) the right of shareholders to buy any future issue of the company's preferred stock prior to submitted public orders.
C) the right of shareholders to maintain their percentage ownership of a company by selling a proportional number of warrants.
D) the right of shareholders to purchase company shares at a specific price within the next 5 years.
Answer: A) the right of current shareholders to maintain their fractional ownership of a company by buying a proportional number of shares of any future issue of common stock.