Definition: In finance, a "subsidy" refers to an amount of money or tax withheld from a company's profits. This is typically done as a percentage of these profits and is often used in conjunction with a dividend payment to encourage shareholders to hold onto their investments. Subscriptions are often used by companies to attract new investors or to help keep existing ones invested, but they can also be used for other purposes such as reducing the amount of tax owed on dividends.
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