Fully Subscribed

Fully Subscribed
A situation in which an underwriting firm has successfully sold to investors all of its available issues of a public offering of securities. When the issue is fully subscribed, the underwriter's risk of being undersubscribed (being unable to sell its allotment of the issue) is completely removed.

Also referred to in slang terms as "pot is clean".

Typically, the goal of a public offering is to price the security issue at the exact price at which all the issued shares can be sold to investors, so there will be neither a shortage nor a surplus of securities. If there is more demand for a public offering than there is supply (shortage), it means a higher price could have been charged and the issuer could have raised more capital. On the other hand, if the price is too high, not enough investors will subscribe to the issue and the underwriting company will be left with shares it either cannot sell or must sell at a reduced price, incurring a loss. Therefore, getting an issue to be perfectly fully subscribed is a difficult and complex balancing act.


Investment dictionary. . 2012.

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  • fully-subscribed — ˌfully subˈscribed adjective FINANCE if a bond or share issue (= when new bonds or shares are sold for the first time) is fully subscribed, all the available bonds or shares are bought: • If the share offering is fully subscribed, we re looking… …   Financial and business terms

  • subscribed — sub‧scribed [səbˈskraɪbd] adjective fully/​90%/​100% subscribed FINANCE used to talk about how many of the shares in a share issue (= when shares are made available for sale) have been bought: • The company has an option to issue as many as five… …   Financial and business terms

  • fully — / fυli/ adverb completely ♦ the offer was fully subscribed all the shares on offer were applied for, so the underwriters to the issue were not forced to buy any ♦ the shares are fully valued the market price of the shares is high enough, possibly …   Dictionary of banking and finance

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