Subscription Agreement

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DEFINITION of 'Subscription Agreement'

An application by an investor to join a limited partnership. In most cases, the investor will have to fill out a form created by the general partner evaluating the investor's suitability for the investment in the partnership.

INVESTOPEDIA EXPLAINS 'Subscription Agreement'

All limited partners must be approved by the general partner. Becoming a limited partner rather than a partner is an attractive option since it means the investor's liability is limited to the amount he or she has invested in the partnership.

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