- oversubscribed
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an oversubscribed Securities Issue has people asking for more shares etc than are available. If this happens, each buyer receives fewer shares than they asked for, or there is a ballot to decide who will receive them:
• The bonds were oversubscribed, and there will be no unsold balance remaining, the underwriter said.
— oversubscription noun [uncountable] :• Analysts expect them to receive only about 2.5% of the shares they ordered because of massive oversubscription.
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When an issuing house receives more subscriptions for a new issue than are available. Applications cannot be met in full and the issue will then be shared out, typically on a pro rata basis. The issue will tend to open at a premium to represent the over-demand.* * *
oversubscribed UK US /ˌəʊvəsəbˈskraɪbd/ adjective► STOCK MARKET if a share issue (= occasion on which new shares are sold) is oversubscribed, people want to buy more shares than are available: 5/10/50, etc. times oversubscribed »The initial public offering of the internet service provider has been more than 20 times oversubscribed.
»The company was valued at €20.8 billion in a heavily oversubscribed flotation.
► a situation in which people want to buy or have many more things, such as tickets, than are available: »The school has an excellent reputation and is heavily oversubscribed.
oversubscription noun [C or U]► »The level of oversubscription is greater than we might have expected.
Financial and business terms. 2012.