- Subscription (finance)
Subscription refers to the process of investors signing up and committing to invest in a financial instrument, before the actual closing of the purchase.
When a new security is to be issued, investors typically have two weeks to submit their subscription orders. At the end of this "subscription period", the issuer announces the offering price and the method of allotment.
Allotment is a method of distributing securities to investors when an issue has been oversubscribed. At the end of the subscription period, the demand for a new issue can exceed the number of shares or bonds being issued. In such cases, the underwriting bank allots the securities with the approval of the issuer, either by lottery or on the basis of a formula. An allotment formula usually takes into account the issuer's preferred target investor groups.
A funding round is oversubscribed when the company has obtained for funding commitments from investors that in aggregate amount to more money than the company needs or intends to raise. It may be used informally to describe a state where there is more money available than the company needs.
Wikimedia Foundation. 2010.
Look at other dictionaries:
Subscription business model — Subscription redirects here. For the subscription process for shares etc., see Subscription (finance). The subscription business model is a business model where a customer must pay a subscription price to have access to the product/service. The… … Wikipedia
subscription — Agreement to buy new issue of securities. Bloomberg Financial Dictionary Acquisition of shares or units in a fund by an investor. NYSE Euronext Glossary * * * subscription sub‧scrip‧tion [səbˈskrɪpʆn] noun 1. [countable] an amount of money you… … Financial and business terms
subscription — 1. The periodic purchase of items by means of payment at regular intervals. For example, I took out a subscription to a monthly finance magazine. 2. A commitment to contribute money to, or to participate in, an activity or cause. 3. A commitment… … Auditor's dictionary
Private investment capital subscription — A private investment capital subscription, commonly referred to as PICS, is a financial tool that relies on a small pool of investors’ money for real estate investments. The money managers of private investment capital subscriptions or PICS are… … Wikipedia
Kiplinger's Personal Finance — Changing Times redirects here. For the French film, see Changing Times (film). Kiplinger s Personal Finance Editor Knight Kiplinger Frequency Monthly First issue 1947 (1947 month) Company Kiplinger … Wikipedia
Security (finance) — This article is about the negotiable instrument. For the legal right given to a creditor by a borrower, see Security interest. Securities Securities Bond … Wikipedia
Ministry of Finance (Sweden) — Finansdepartementet overview Formed 1840 (1840) Employees about 470 Ministers responsible Anders Borg … Wikipedia
Customer finance — is a technique used by entrepreneurs to capitalize their companies. It is different from traditional techniques such as boot strapping, angel finance, debt, mezzanine and venture capital.Advocated largely by David A. Silver, customer finance can… … Wikipedia
International Finance Corporation — ▪ UN United Nations (UN) specialized agency affiliated with but legally separate from the International Bank for Reconstruction and Development (World Bank) (World Bank). Founded in 1956 to stimulate the economic development of its members … Universalium
Kiplinger — (pronounced IPA| KIP ling er ) is a Washington, D.C. based publisher of business forecasts and personal finance advice, available in print, on line, audio, video and software products ( [http://www.kiplinger.com Kiplinger.com] ).Its best known… … Wikipedia