Subscription period

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The subscription period is from issuers of fixed period within which as part of a securities issue new coming to market securities such as stocks or bonds before the IPO at a fixed price drawn can be.

backgrounds

The classic case for a subscription period is before a company goes public . A deadline is set here within which interested investors can subscribe to the new shares . This subscription corresponds to a unilateral declaration of intent hoping for the allocation of the corresponding shares. All declarations of intent to subscribe for the shares are collected in the so-called order book .

If the demand is so high that the securities are already oversubscribed (more demand than supply), the subscription period can be ended prematurely. If there is great demand, an over-allotment option can also be exercised if this is provided for in the terms of issue.

Rights issues

Particularly in the case of rights issues , i.e. capital increases that grant subscription rights to existing shareholders, there is a statutory subscription period of at least two weeks in Germany, which is often referred to as the subscription period.

Derivative products

While most "normal" options take place continuously and without a separate subscription period, the issuing banks often set a subscription period of 2 to 3 days, especially for exotic options , ie derivatives that are not necessarily standard products. During this period, z. For example, other banks also have the time to speak to their respective customers about a possible subscription.

What is special about this drawing is that the issue price is often dependent on various underlying influencing factors. The price calculation method is announced at the beginning of the subscription period, but the exact determination and disclosure of the base and reference prices only takes place after the subscription period has ended.

See also

literature

  • Joel Greenblatt - The magic formula of the stock exchange , Börsenmedien AG, Kulmbach 2006, ISBN 3-938350-15-6
  • Werner Kurzawa - Speculating with a system , market and technology publishing house, Haar near Munich 1989, ISBN 3-89090-735-0