Subscription Period

In trading, the term subscription period denotes the time frame during which investors can reserve securities at a set price before those securities are issued.

This period is key to a company’s initial public offering because it provides a clear picture of market demand for the security. If demand for a security is high, the issuer may shorten the subscription period. If demand is low, the issuer may make use of a greenshoe option to extend the subscription period.

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Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.