rights to subscribe
Defined in 1 dictionary — Case Law
Definitions from Case Law
From 302 U.S. 63 - Palmer v. Commissioner · 1937Most cited · 406 citing opinions
The mere issue of rights to subscribe and their receipt by stockholders is not a dividend. No distribution of corporate assets or diminution of the net worth of the corporation results in any practical sense. Even though the rights have a market or exchange value, they are not dividends within the statutory definition. They are at most options or continuing offers, potential sources of income to the stockholders through sale or the exercise of the rights.