Subscription(redirected from Stock Subscriptions)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved