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In this segment, Todd Ault explains the concept of a subscription agreement, which is essential when purchasing stock in a private placement. This agreement confirms that the buyer has read and understood the private placement memorandum (PPM), is qualified, and commits to purchasing stock or joining a limited partnership. Ault emphasizes that he has raised substantial funds over his 30-year career, and every investor was required to sign such an agreement. Subscription agreements also reference additional documents like warrant agreements, and they are necessary when investing in hedge funds or private entities. Ault notes that entrepreneurs raising money for startups should consider the importance of subscription agreements.