- overhang
- Used in the context of general equities. Sizable block of securities or commodities ( commodity) 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. Bloomberg Financial Dictionary
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▪ I. overhang o‧ver‧hang 1 [ˌəʊvəˈhæŋ ǁ ˌoʊvər-] verb overhung PTandPP [-ˈhʌŋ] [transitive]1. to have a bad influence on something:• Currency worries overhung many engineering stocks.
2. overhang the market FINANCE if a large quantity of something overhangs the market, it has not been sold when it should have been and therefore has a negative influence on prices:• There is not a huge surplus overhanging the market.
an unsold quantity of something that has a bad influence on prices, markets etc:• The huge overhang of world-wide crude oil inventories further depressed energy prices.
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Ⅰ.overhang UK US /ˈəʊvəˌhæŋ/ noun [C, usually singular]► COMMERCE a quantity of goods or other things that have not been sold when they should have been: a stock/an inventory/a supply overhang »We're about to enter the selling season with a really big supply overhang.
an overhang of sth »Prices are unlikely to increase while there is an overhang of 40,000 unsold new houses.
► FINANCE, STOCK MARKET a situation on a stock market in which a quantity of shares is available but not sold, reducing their price: an overhang of sth »The potential overhang of more than 200 million shares of stock is one of a number of financial and legal risks that investors in the company face.
Ⅱ.overhang UK US /ˌəʊvəˈhæŋ/ verb [T] (overhung, overhung)► FINANCE, STOCK MARKET to bring down the price of something because there is too much of it available: »Massive gold stocks continue to overhang the market, traders say.
Financial and business terms. 2012.