oversubscribed investment & finance definition
A
term used in underwriting to describe a new stock or bond issue that has more
buyers than available shares. If an offering is oversubscribed, its price will
often shoot up once it begins trading in the market. By using a green shoe
provision, which allows the underwriter to sell more shares, the underwriter
can modestly increase the number of shares offered.
See oversubscribed in Wall Street Words
- Or, relating to, or being a new security issue for which there are more requests to purchase securities than are securities available for sale. For example, brokers may take a sufficient number of preliminary orders for a new issue of stock for which there are insufficient shares available to satisfy the demand. Also called overbooked.
- Of, relating to, or being a buyback or takeover attempt in which more securities are offered than the purchaser has agreed to buy. In such a case the purchaser may decide to buy the additional securities or may buy the agreed-upon number on a pro rata basis.
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