Glossary entry (derived from question below)
English term or phrase:
subscription/underwriting
English answer:
direct acquisition/guarantee of resale
English term
France
High Quality & Great Turnaround
Native in: French 
Works in: English to French, Russian to French
subscription/underwriting
Could you please explain to me the difference between these two words here:
"to acquire any such shares, stock, debentures, debenture stock, bonds, notes, obligations or securities by original subscription, contract, tender, purchase, exchange, under-writing, participation in syndicates or otherwise, or whether or not fully paid up and duly subscribed for the same subject to such terms and conditions (if any) as may be thought fit"
Thanks!
| 4 +2 | direct acquisition/guarantee of resale |
Martin Riordan
|
| 3 | different methods of purchasing shares in a company |
Allison Wright (X)
|
| Underwriting/Subscription |
Ioanna Daskalopoulou
|
Mar 8, 2011 12:36: Stéphanie Soudais changed "Language pair" from "English to French" to "English" , "Field" from "Tech/Engineering" to "Bus/Financial"
Mar 8, 2011 13:03: Steffen Walter changed "Field (specific)" from "Finance (general)" to "Investment / Securities"
Aug 21, 2011 12:50: Martin Riordan Created KOG entry
Responses
Brazil
Brazilian lawyer - 40+ years in Brazil
Native in: English (Variants: US, Australian, Canadian, New Zealand, Scottish, British, UK, Irish) 
, Portuguese (Variants: Angolan, European/Portugal, Brazilian, Mozambican)
Works in: Portuguese to English, English to Portuguese, English, and 1 more.
direct acquisition/guarantee of resale
With underwriting, a financial company (bank, investment company, etc.) assumes the risk and committment of reselling the total issue of the product to individual investors. I.e., this company "underwrites", or guarantees, the placement.
Subscription refers to the process of investors signing up and committing to invest in a financial instrument, before the actual closing of the purchase.
Underwriting refers to a process whereby investment bankers (underwriters) buy a new issue of securities from the issuing corporation or government entity and resell them to the public.
When a new security is to be issued, investors typically have two weeks to submit their subscription orders. At the end of this "subscription period", the issuer announces the offering price and the method of allotment.
Once the underwriting agreement is struck, the underwriter bears the risk of being able to sell the underlying securities, and the cost of holding them on its books until such time in the future that they may be favorably sold.
different methods of purchasing shares in a company
If there is a "rights issue" (i.e. the issue of shares in a company for the purpose of raising capital), such a rights issue may be underwritten. The underwriter would normally be an investment bank, or similar institution.
If the shares under the rights issue are not fully subscribed (i.e. not all of them are purchased by the public), then the underwriter would purchase the balance of the unsold shares, and would normally be entitled to sell them. He thus guarantee that the company raises the amount of capital it requires. The underwriter purchases such shares after the fixed date upon which the rights issue "closes", or is no longer available to members of the public.
Reference comments
Greece
Your limit up in translation!
Native in: Greek (Variant: Modern) , English (Variants: UK, US)
Works in: English, Greek to English, English to Greek, and 4 more.
Underwriting/Subscription
1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt).
2. The process of issuing insurance policies.
Investopedia explains Underwriting
The word "underwriter" is said to have come from the practice of having each risk-taker write his or her name under the total amount of risk that he or she was willing to accept at a specified premium. In a way, this is still true today, as new issues are usually brought to market by an underwriting syndicate in which each firm takes the responsibility (and risk) of selling its specific allotment.
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