This section is from the book "Popular Law Library Vol8 Partnership, Private Corporations, Public Corporations", by Albert H. Putney. Also available from Amazon: Popular Law-Dictionary.
A subscription to stock, is the signing of an agreement to take a specified amount of the capital stock of the corporation. If the corporation is already-incorporated, the contract becomes at once binding on the subscriber. There is some dispute in the case of the subscriber to a corporation not yet organized. Some hold that in such a case, the subscribers are bound, the promise of a subscriber to be the consideration of the promise of the other; other cases hold that there is no liability in such cases. Under any circumstances, if the subscriber accepts the stock after the organization of the corporation, he becomes bound on the terms of his contract of subscription.
1 Cyclopedia of Law and Procedure, Vol. X, pp. 364-365.
 
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