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Oversubscription

Business Overnight repoOver-the-counter market

Oversubscription privilege
In a rights issue, arrangement by which shareholders are given the right to apply
for any shares that are not taken up.
Legal Reserve Requirement ...

 


Oversubscription: The situation when the underwriting commitments from a syndication exceed the amount sought by the borrower.

Oversubscription
An oversubscription of shares on an IPO means that there was much more demand than supply of shares on an initial offering.
Popular terms ...

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

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.
Oversubscription ...

See also: Expense, Bills, Indenture, Expected return, Prepayment

Business Overnight repoOver-the-counter market

 
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