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If you're a private investor in a company, you're known as a subscriber. A Subscription Agreement is a promise by the company to sell a given number of shares to an investor at a certain price, and... Read More
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Making a Subscription Agreement
If you're a private investor in a company, you're known as a subscriber. A Subscription Agreement is a promise by the company to sell a given number of shares to an investor at a certain price, and an agreement by the investor to pay that price. If you own a company and have promised to sell a certain amount of stocks to an investor at a specific price, you should nail down the details with a Subscription Agreement.
Use the Subscription Agreement document if:
Whether you're an individual private investor or a company that's in investing in another, a Subscription Agreement spells out the details of the transaction, including the price and agreed upon amount of the shares. If you're the investor, you can protect yourself against companies changing the terms of the deal. If it's your company that's selling shares or stocks, you don't want an investor changing their mind at the last minute. A Subscription Agreement can help you turn a promise into a real transaction.
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