oversubscription

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Oversubscription

The excess number of shares or bonds that investors want to buy but are not available due to high demand.

Oversubscription

A situation in which investors show so much interest in a new issue of a security that demand exceeds supply. Before a new issue, underwriters canvass potential investors, who may or may not book an order to buy a portion the new issue. If investors order more shares than there are shares being issued, the security is said to be oversubscribed. This may affect the price when the security is actually issued.

oversubscription

a situation in which the number of SHARES applied for in a new SHARE ISSUE exceeds the numbers to be issued. This requires the ISSUING HOUSE responsible for handling the share issue to devise some formula for allocating the shares. By contrast, undersubscription occurs when the number of shares applied for falls short of the number on offer, requiring the issuing house which has underwritten the shares to buy the surplus shares itself See CALLED-UP CAPITAL, PAID-UP CAPITAL.

oversubscription

a situation in which the number of SHARES applied for in a new SHARE ISSUE exceeds the numbers to be issued. This requires the ISSUING HOUSE responsible for handling the share issue to devise some formula for allocating the shares. By contrast, undersubscription occurs when the number of shares applied for falls short of the number on offer, requiring the issuing house that has underwritten the shares to buy the surplus shares itself. See CAPITAL MARKET.
References in periodicals archive ?
The sovereign debt offering was over-subscribed and was priced to yield 6.
Many schools are shown to be massively over-subscribed, with two, three and four or more applications for each place, leading to comments such as "More than 500 families were disappointed when their child did not get a place at Mirfield Free Grammar" and "Reinwood Infants and Nursery is more than three times over-subscribed with 286 applications for 90 places" However, a closer examination of the statistics (97.
Liverpool council says many schools are over-subscribed, which means children have to be allocated places at other schools.
Organisers of the Burgham Horse Trials - which take place near Felton, from Friday, July 13 to Sunday 15 say they expect the competitions to be over-subscribed.
The issue was three times over-subscribed with orders received from 205 investors.
MORE than five children battled it out for every available place at Solihull's most over-subscribed primary school.
Monmore were yesterday over-subscribed and expected to turn four races into at least ten - Oaks heroine Freedom Emma is among the entries for the bitches' race.
The issue was four times over-subscribed, reports Caribbean Net News (Dec.
Andrew Merchant, deputy head at William De Ferrers, in South Woodham Ferrers , explained: "We are one of the most over-subscribed schools in Essex and ran out of space.
FORTY appeals have been heard after Blyth's new academy was significantly over-subscribed.
Because this year's event was over-subscribed, they have extended the entry list to 50.