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Subscription
(redirected from Subscribed Stock)

   Also found in: Dictionary/thesaurus, Medical, Legal, Encyclopedia 0.01 sec.
Subscription
Agreement to buy new issue of securities.

Subscription
An agreement to buy a new issue of a security before it is actually issued. Before a new issue, underwriters canvass potential investors, who may or may not make an order to buy a portion of the new issue. The extent to which the issue is subscribed may affect the price when the security is actually issued. It is important to note that a subscription is not binding, as it is illegal to sell a security that has not actually been issued. To subscribe is also called to book. See also: Overbooked, Underbooked.


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Subscription for the new stocks will take place no later than May 20, 2001 and payment for subscribed stocks will be made no later than May 20, 2001.
Subscription to the new stocks will occur no later than April 1, 2001, and payment for subscribed stocks made no later than April 1, 2001.
 
 
 
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