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Investment trusts may issue subscription shares, also called warrants, to grow their assets. These shares can be converted into ordinary shares at a fixed price during a specified period, known as a subscription right. Holders are not obligated to convert their shares. For instance, one subscription share may be issued for every five ordinary shares held. If the conversion price is £1 and the ordinary shares are trading at £1.50, converting leads to a profit of 50p per share. This situation is more straightforward if subscription shares are received for free, as converting becomes more advantageous than purchasing shares on the open market.