The subscription agreement contains the details of the transaction, including the commitment of the underwriting group to purchase the new issue of securities, the agreed price, the initial resale price and the settlement date. In investment banking, an underwriting contract is a contract between a sub-author and an issuer of securities. In a Best Efforts underwriting agreement, sub-writers do their best to sell all the titles offered by the issuer, but the underwriter is not required to buy the securities on their own behalf. The lower the demand for a problem, the more likely it is to do its best. Shares or bonds that have not been sold are returned to the issuer. In the event of universal underwriting or not, the issuer decides that it must receive the proceeds from the sale of all securities. Investors` funds are held in trust until all securities are sold. If all securities are sold, the proceeds are paid to the issuer. If all the securities are not sold, the issue will be cancelled and the investors` funds will be returned to it. The purpose of the underwriting agreement is to ensure that all actors understand their responsibilities in this process and thus minimize potential conflicts. The subscription agreement is also called a subscription contract.
The subscription agreement can be considered as a contract between an entity issuing a new issue of securities and the subscription group that agrees to buy and resell the issue at a profit. The following types of underwriting contracts are the most common: A Best Efforts underwriting agreement is primarily used for the sale of high-risk securities. The term “underwriting” refers to an obligation to subscribe for or buy securities that cannot be sold to investors or paid for by investors in connection with an offer of securities. With such an obligation, a sub-author takes the risk for the issuer that the securities offered are not supported by investors. The underwriter therefore guarantees the issuer, under certain conditions, the number of securities sold and the amount of proceeds that the issuer receives. As a general rule, international offers of securities are made through a consortium of managers led by one or more “lead managers” or “arrangen”. The objective of the subscription consortium is to spread the subscription risk and ensure a successful distribution of the offer. The Lead Manager is responsible for organizing the expense and managing the underwriting and distribution agreements.
Stand-by-underwriting, also known as strict underwriting or old-fashioned underwriting, is a form of stock insurance: the issuer instructs the songwriter to buy the shares that the issuer did not sell as part of the subscription and shareholder demands.  A mini-maxi-chord is a kind of best-effort underwriting that only takes effect when a minimal amount of titles is sold. Once the minimum is reached, the songwriter can sell the titles within the limit set in the terms of the offer….