Overallotment: What is the Meaning of Overallotment?
Overallotment can be defined as, Overuse is an option that is generally available to consumers that allows the sale of additional shares that the company may wish to issue in an initial public offering or a secondary / additional offer. With the overcharge option, customers can issue up to 15% more shares than the plan. This option can be used for up to 30 days after bidding and does not have to be done on the same day.
On the stock exchange, it offers to sell more shares etc. What is actually available until a particular order is canceled.
Meanings of Overallotment
Sell securities other than when the company's shares were previously issued.