In a legal context, the term subscribed means that you write and sign your name at the end or end of a document. This means that you are the creator of the document (for example, a letter) or that you accept the terms of a contract. Subscribed share capital refers to any capital raised by the subscribed shares. Simply put, it`s the value of all the stocks investors want to buy in a new issue. Subscribed shares are a specific amount of shares that investors promise to buy in an offering, usually through an IPO. FindLaw.com Free and reliable legal information for consumers and lawyers The FindLaw Legal Dictionary – free access to more than 8260 definitions of legal terms. Search for a definition or browse our legal glossaries. At FindLaw.com, we pride ourselves on being the leading source of free legal information and resources on the Internet. Contact us. The prospectus of a new offering is a detailed document that potential investors study before subscribing to a new issue.
The prospectus is a formal legal document required by the Securities and Exchange Commission (SEC) that contains information about an investment offer for sale to the public. This includes basic details such as the name of the issuer, the amount and type of securities to be sold, and the number of shares available (for a share offering). LawInfo.com Federal Bar Directory and Legal Consumer Resources Writing one`s name on a written document; the affixing of a signature to a document, whether for certification or authentication purposes, to adopt its terms as its own forms of expression or to commit oneself to an obligation contained therein. Subscription is the act of the hand, while authentication is the act of the senses. Signing a document published in the form of a will only means writing the name of the witness on the same paper; To testify to a will is to know that it has been published as such and to confirm the facts necessary to constitute a publication of fact and law. In the will of Re Downie, 42 Wis. 66, 76. A written contract that agrees to pay money for a specific purpose, either for free, as in the case of a subscription to a charity, or in return, in the form of a subscription to a magazine, an upcoming book, a series of conversations or otherwise. Subscription list.
A list of subscribers to an agreement between them or a third party. The term “subscribed” refers to newly issued securities that an investor purchases or intends to purchase prior to the official date of issuance. When investors subscribe, they expect to hold the number of shares they nominate once the offering closes. This is common among institutional investors, who are guaranteed shares by subscribing to a company`s initial public offering (IPO) before knowing the actual price of the initial public offering on the first day of trading. A number is considered fully subscribed if it is subscribed at exactly the right amount. Another term sometimes used for fully subscribed is the colloquial term “pot is clean”. But there are cases where the demand is much higher and much lower than expected: are you a lawyer? Visit our professional website » Private companies looking to raise capital can do so by making an offering, such as an IPO, going to market and selling shares. Companies hire investment banks to act as underwriters and set the offer price. The bank`s objective is to have the right number of investors subscribed for the issue. Being subscribed means that during an offering, an investor buys a certain number of shares or accepts the purchase. Abogado.com The #1 Spanish Legal Website for Consumers If the underwriters had valued the shares at $45 per share to get a higher profit margin, they might only have been able to sell half of the shares.
That would have signed the stock. As a result, half of the shares would remain unpurchased and be reoffered at a lower price – for example, at $35 per share. IPOs and new stock issuance are a great way for private companies to raise the funds needed to fund their operations and achieve the growth they need to succeed. Companies engage investment banks to promote, subscribe and engage new investors (and existing investors in case of subsequent offers) to subscribe to the offer. Subscription means that there is sufficient demand for the total number of shares available. Investors who choose to subscribe should read the basic details set forth in the prospectus that the company provides to the SEC. Here`s a hypothetical example to show how subscriptions work. Suppose ABC Company will provide 100 shares in an upcoming public offering. The underwriter conducts its due diligence and sets a fair market price of $40 per share. The bank offers these shares to investors at this price and investors commit to buying the 100 shares. ABC`s offer is now fully subscribed as there are no more shares for sale.
Look for information that is unique to that company, not just the legal language that all publicly traded companies include in their filings when you read a prospectus. The investment bank tries to determine the best offer price, which will result in an optimal number of share subscriptions – too many subscriptions will not impress the issuing company, as the company will likely prefer a higher offer price. Conversely, too few subscriptions can prevent the investment bank from selling its entire portfolio of securities issues, exposing it to significant losses. Kirsten Rohrs Schmitt is an accomplished professional editor, author, proofreader and fact-checker. She has expertise in finance, investment, real estate and world history. Over the course of her career, she has written and edited content for numerous consumer magazines and websites, created resumes and social media content for business owners, and created materials for colleges and nonprofits. Kirsten is also the founder and director of Your Best Edit; you can find them on LinkedIn and Facebook. Privacy PolicyDisclaimerCookiesDo not sell my information to the U.S. Securities and Exchange Commission.
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