Die Heuning Pot Literature Guide
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Finance Glossary

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Subscription Agreement

Definition:

A written form that is used to determine if an applicant is suitable to become a limited partner in a DPP. The subscription agreement will contain item such as the applicant's net worth, income and past history of similar investments. It will also spell out the risks that are entailed with investing in the DPP. The lawyers who drafted the thing will use all kinds of weasel language that confuses more than enlightens, but basically you know going in that (a) DPPs are really risky, and (b) it's likely that you'll lose all your investment. Even if they don't really believe that it will be quite so bad, they'll make like it is. Like those annoying forms that fall out of your magazines, this is a form and an agreement that investors have to fill out in order to become members of a limited partnership.

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