What is the subscription range?

The subscription range is the difference between the price per share, which is paid by the corporation by the subscriber or the subscription group, and the public offer of the prize offered to the public. The subscription range generally represents the net revenues that the subscriber realizes from the investment. Depending on the size of the securities problem and the price that the stocks can place in the open market, the subscription range may be significant.

There are several factors that can go to determine the size of the subscription range. Problems issued by corporations that are well known, large size and are considered financially stable, at the time of the public offer, they will be in command of a higher price per share. In addition to the nature of the corporation, the type of safety also affects the subscription range. For example, shares can in some cases a better return than a bond problem. Security classification such as Junior or Senior will also affect the application for investors.

, together with the factors associated with the issuing entity, the subscriber's obligation will also affect the subscription range. If a syndicate such as an subscription group is used for this problem, it means that several investment bankers are likely to join. Combined networks and resources that this collection of bankers can command versus those that a single subscriber can mean a huge difference in the distribution and public awareness of new security. The syndicate could most likely buy and sell much more shares than one subscriber.

The actual extent of the subscription range is defined in the terms of the agreement between the issuing company and the subscriber or the subscription group. In cases where it is under the auspices of a small society, the subscription range can be as low as a fraction of one percent. Problems with propagation on supplies can be anywhere from ten to twenty -five percent. INIf the subscription group processes further sale of securities, the subscription range is divided between participants based on their level of participation in the initial purchase from the issuing company.