Souscription

Souscription is the act of joining or agreeing to obtain a service, asset, or contract by making a commitment or payment. In finance, insurance, publishing and other sectors, it denotes participating in a project or signing a binding agreement. The term comes from Latin subscribere, to write under.

In corporate finance, souscription refers to subscribing to newly issued shares as part of a capital increase. Investors accept a fixed price within a set period; existing shareholders often have a droit de souscription to maintain their stake. Subscriptions may be fully paid at allotment or later, and underwriting may guarantee take-up. Public offers are called offres publiques de souscription; private placements are souscriptions privées.

In insurance, souscription denotes underwriting and issuing a policy, where the insurer covers defined risks in exchange for a premium. The contract becomes binding when the insurer accepts the risk and issues the policy.

Legally, a contrat de souscription is the commitment to subscribe to a capital increase or participate in a transaction, possibly with conditions, warranties, or pre-emptive rights. Regulators may require disclosures and prospectuses.

Overall, souscription is a broad term used in finance, insurance, and content services to denote enrolling, subscribing, or underwriting a position, with meaning varying by context and regulatory framework.