Subscription

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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.
References in periodicals archive ?
Accordingly, any Pechiney shares underlying stock purchase or stock subscription options for which optionees enter into this liquidity agreement will not be included in the computation of the number of fully-diluted Pechiney shares for purposes of the Alcan's revised tender offer.
OTCBB: TSCI) announced today that the Company entered into a preferred stock subscription agreement with Al Soor Consulting for Financial Management Co.
The Company previously announced that it had entered into a Stock Subscription Agreement on May 20, 1997 to sell 2,500,000 shares of its Class B Common Stock to Wembley Rubber Products (M) Sdn.