If all securities are not sold, the issue will be cancelled and investors` funds will be returned to them. The subscription contract can be considered as a contract between a company issuing a new issue of securities and the subscription group that agrees to buy and resell the issue at a profit. On the underwriting side, the process involves the sale of shares or bondsRate bondsThe price of bonds is the science of calculating the issue price of a bond based on coupon, face value, yield and maturity at maturity. Bond pricing allows investors to make initial public offerings (IPOs) or follow-up offers. Subscribing to a security offering on the basis of a firm commitment exposes the subscriber to significant risk. As a result, underwriters often insist on including an exit clause in the underwriting contract. .