Subscribed

Subscribed

Newly issued securities that an investor has agree to, or stated his intent to, buy in a public offering prior to the issue date. When an investor uses rights, he expects to own the designated number of shares they have subscribed to once the offering is completed.

Notes:

The goal of an investment bank in a public offering of securities is to have enough subscribed investors for the issue. Essentially, you can view a subscription to a public offering as an order to purchase soon-to-be issued shares from your brokerage firm.

The investment bank handling a public offering tries to determine which offering price will result in an optimal number of share subscriptions too many subscriptions will not impress the issuing company, since they would have preferred a higher offering price. Conversely, too few subscriptions might result in the investment bank being unable to sell their entire inventory of the security issue, exposing it to significant losses.

See also: Investment Bank - IB, Investment Banker, Initial Public Offering - IPO, Oversubscribed, Prospectus, Rights, Undersubscribed, Underwriting