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Oversubscribed
A term referring to an offer for sale where applications for shares exceed the number of shares available. When this happens, the allocation of shares will depend on the rules set out in the company's prospectus, but a common solution is to scale back all applications so that everyone gets a smaller slice of the available new issue than they applied for.
Similar MatchesOversubscribed issueOversubscribed issue
Investors are not able to buy all the shares or bonds they want, so underwriters must allocate the shares or bonds among investors. This occurs when a new issue is underpriced or in great demand because of growth prospects.
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