Overhang


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Overhang

Used in the context of general equities. Sizable block of securities or commodities contracts that, if released on the market, would put downward pressure on prices; prohibits buying activity that would otherwise translate into upward price movement. Examples include shares held in a dealer's inventory, a large institutional holding, a secondary distribution still in registration, and a large commodity position about to be liquidated.

Market Overhang

Shares in a security or commodity contracts that are likely to be sold in certain circumstances, creating downward pressure on the price. That is, the market overhang supply is a block that investors are holding but will likely attempt to sell. For example, if a security hits its resistance level, more investors are likely to sell their shares which increases the number of shares available on the market and, assuming demand does not increase, will lead to a decline in the price. Market overhang is also called the overhanging supply or simply the overhang.
References in periodicals archive ?
This evidence suggests that structure overhang may have been a factor behind the large and persistent drop in the growth of investment in structures during the recession and the subsequent early years of the recovery.
The shade transmittance had a smaller effect on horizontal illuminance beyond 4 m (13 ft) from the window; illuminance in this portion of the classroom was more affected by the top window size and overhang and light shelf properties.
In the aforementioned cadaveric study, Middernarcht noted that due to the infraglenoid tubercle, glenosphere overhang could not always be achieved: 75% of 36 mm glenospheres (150 scapulae) and 27% of 42 mm glenospheres (55 scapulae) when assembled to the glenoid baseplate as inferiorly as possible had no overhang.
It is commonly asserted that the capacity utilization rate provides a good characterization of whether firms need to invest, and thus whether there is a capital overhang.
Stock option overhang increased well beyond optimal levels at many companies in 2001, as employees and executives exercised fewer options, according to a new study of 1,219 publicly traded companies conducted by Watson Wyatt Worldwide.
Roof overhangs or trellises provide the solution to shading these windows, and are sized so that most or all of the high summer sun is blocked out, while much of the low winter sun is allowed in (see sidebar on page 8), keeping things cool in the summer and warm in the winter.
Although stock option overhang at the right level (with the correct combination of options and managerial ownership) is, overall, a healthy development, there is increased exposure and possible liabilities that executives must manage and boards need to monitor.
Even a large currency overhang would have only a small potential impact on the money stock of all eleven euro-countries.
Third and most important, if the stock price declines, these high-priced options expire more quickly and stop inflating the company's overhang rate and potential future dilution.
The company will have an option overhang of approximately 10% (11,111/(100,000 + 11,111)).
Quantitative work has been done on monetary disequilibrium in CPEs, but most previous studies attempt to estimate monetary overhang or forced savings from the time series data of the CPE under investigation, rather than from cross-country comparisons (e.