1 Once upon a time, when you bought broccoli you bought the whole vegetable, stems and crowns. Then it became customary for grocery store produce departments to separate the crowns from the stems and to sell the crowns at a premium. 2  Iâm not a fan of this practice, because I like both parts of the broccoli plant.
A company's first issue of common stock to the public is called an Initial Public Offering. Afterwards, a corporation may issue new equity at any time in order to finance its growth. When new common shares are offered to existing shareholders first, this is called a rights offering.
Subscription price. The subscription price is the discounted price at which a current shareholder can buy additional shares of company stock before these newly available shares are offered for sale to the general public. In some cases the shareholder can buy the new shares without incurring a brokerage fee.