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Investment trusts may issue subscription shares, or warrants, to facilitate asset growth. These shares can later be converted into ordinary shares at a fixed price within a specific timeframe, termed a subscription right. Shareholders are not obliged to convert these shares. For instance, a shareholder might receive one subscription share for every five ordinary shares held. If you acquire subscription shares for free, the decision to convert depends on market conditions. If these shares can be converted at £1 when ordinary shares are trading at £1.50, converting is profitable. In this case, converting yields a £0.50 profit per share compared to purchasing in the open market.