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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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To use rights for ordering securities sold as a new issue.
References in periodicals archive ?
M2 EQUITYBITES-June 10, 2016-Ternium subscribes for further shares in Usiminas Capital
If MacAndrews & Forbes subscribes for Class A common stock, Revlon will distribute, at no charge, to each stockholder of record of its Class A common stock and Class B common stock, as of the close of business on March 22, 2004 (the "Record Date"), non-transferable subscription rights that will enable rights holders to purchase one share of Class A common stock for each subscription right at a subscription price equal to $2.
Any holder of a Rights Certificate who subscribes for all the Common Shares that can be subscribed for with the Rights evidenced by such Rights has the privilege of subscribing for additional Common Shares at $0.