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 ?
Elk has the right to make alternative cash payment to MicroTel for the stock subscription through December 15, 1996, and to receive a corresponding assignment of proceeds from the promissory note when collected.
The bank has petitioned and received approval from the Department of Financial Institutions to allow the bank to accept stock subscriptions over the offering amount.
It will continue to accept common stock subscriptions up to the closing of the offering on July 28, 2006.
At September 30, 2005, stock subscriptions totaling $115.