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Investment trusts may issue subscription shares, also known as warrants, to grow their assets. These subscription shares can be converted into ordinary shares at a fixed price within a predetermined period. This is known as a subscription right, and shareholders are not obligated to convert the shares. For instance, a shareholder might receive one subscription share for every five ordinary shares held. The decision to convert depends on market conditions at the time of conversion. If subscription shares are received at no cost, conversion can be advantageous; for example, if the conversion price is £1 and ordinary shares trade at £1.50, converting would yield a profit of 50p per share compared to market purchase.