Legal Definitions - subscribed stock

Subscribed stock is a type of stock that represents the capital or principal fund raised by a corporation through subscribers' contributions or the sale of shares. This means that people who buy subscribed stock are contributing to the company's overall funds and becoming part owners of the company.

For example, if a company needs to raise money to expand its operations, it may offer subscribed stock for sale to the public. Investors who buy this stock are essentially giving the company money in exchange for a share of ownership and the potential to earn a return on their investment through dividends or an increase in the stock's value.

Another example is when a company offers subscribed stock to its employees as part of their compensation package. This allows employees to become part owners of the company and benefit from its success.

Overall, subscribed stock is a way for companies to raise funds and for investors to become part owners of a company and potentially earn a return on their investment.