18:51
medicine is a scam
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
oversubscription
Read a random definition: home port
A quick definition of oversubscription:
Oversubscription: When there are more people who want to buy something than there are things available to buy, that's called oversubscription. For example, if a company is selling shares of stock and more people want to buy the stock than there are shares available, that's oversubscription. It's like when there are only a few cookies left and more people want a cookie than there are cookies to go around.
A more thorough explanation:
Definition: Oversubscription is a situation where there are more people who want to buy a new issue of securities (like stocks or bonds) than there are securities available for purchase.
Example: Let's say a company decides to issue 1,000 shares of stock. However, when they offer these shares for sale, 1,500 people want to buy them. This means that the issue is oversubscribed by 500 shares.
Another example: A government may issue bonds to raise money for a project. If the demand for these bonds is higher than the number of bonds available, the issue is oversubscribed.
Oversubscription can be a good thing for the issuer because it shows that there is high demand for their securities. However, it can be frustrating for investors who are unable to purchase the securities they want.