An enterprise subscription agreement is similar to a standard purchase agreement because it works in the same way. It is a promise made by a private company to sell a certain number of shares at a certain price to the subscriber or private investor. It is also a promise that the subscriber makes to buy shares of the share at the previously agreed price. While this is done between two private parties, each share sold makes the subscriber one of the owners of the business, just like a traditional investor. A private placement is a sale of shares to a limited number of accredited investors who meet certain criteria. The criteria for accredited status include a certain degree of investment experience, assets and net assets. Investors will receive a private placement memorandum as an alternative to the prospectus. The memorandum contains a less complete description of the investment. .