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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 (redirected from subscriptive)

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