A subscription agreement is a contract between a group of investment bankers forming a subscription group or consortium and the company issuing a new issue of securities. As part of a Firm Commitment Underwriting, the underwriter guarantees the acquisition of all securities offered for sale by the issuer, that it can sell them to investors. This is the most desirable deal because it guarantees all the issuer`s money immediately. The more the offer is requested, the more likely it is to be made on a fixed commitment basis. In a firm commitment, the songwriter puts his own money at risk if he cannot sell the securities to investors. The subscription agreement can be considered as a contract between an entity issuing a new issue of securities and the subscription group that agrees to buy and resell the issue at a profit.