what is a subscription agreement in finance 
in finance a subscription agreement is an agreement to buy shares of a limited partnership an investor agrees to buy shares in a certain company in exchange for a share of that company s equity the agreement will include the time and date of the sale the price and quantity of shares traded and any additional terms or backout conditions for the sale the bottom linea private investment in public equity pipe is a transaction where companies sell shares in return for capital from a major investor although the issuing company is already listed in the stock market selling equity through a pipe can be faster and more efficient than selling their shares to the public on the downside the issuer must accept a discount from the market price 