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Investment Banking

  Investment Banking   |   Terms
  • 1181
  • March 27, 2021
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Subscription

A commitment by investors to purchase securities issued at an initial public offering (IPO). This represents an agreement of intent to buy the securities at some future date. Investors who subscribed to a given company’s new issue can use their rights for ordering the securities during a specific period of time (subscription period) after which the rights to subscribe will expire worthless.


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