Subscription agreements are used when new shares are first created and sold in the primary market. They are like the “birth certificate” of the shares, confirming eligibility, compliance, and the original terms of the investment.
Once those shares exist, ownership is tracked on the official ledger. In the secondary market you are not creating new shares, you are just transferring existing ones, so the ledger alone is what establishes who owns what.
Think of it like this: sub docs are for the birth of shares, the ledger tracks their life.
Why provide subscription agreements for the original purchase if everything is tracked on the official ledger?
Written by Korin Hedlund