Right (Subscription rights)

Rights certificates display the specific rights of shareholders that occur when a listed company issues new shares. As a bond right towards companies, subscription rights are separated from stocks and can be independently transferred through the transfer of the rights certificate.

The KRX opened the market for the subscription rights in January 2002 to support the government policies for promoting the equity financing by assisting the efforts of the listed corporations in raising capital.

Unless specifically stated, subscription rights are traded in a manner similar to the stocks. Considering the wide range of price variation, placement of limit quotation is permitted without applying rules on the price change limit and base price.

Based on the specific characteristics of rights certificates, trading methods different from the stock market trading system, in part, are applied.

Right (Subscription rights)
classification Stock market Subscription right market
market classification Regular session; after-hours session Regular session
Quotation type Limit, Market, Conditional limit, Immediately executable limit, Best limit Limit
Price change limit ±30% None
Base price Previous day’s closing price None
Reported block trading; after-hours trading Allowed Not allowed
Substitute security Yes No