Definition of Oversubscribed:
Oversubscribed can be contrasted with an undersubscribed issue, where demand cannot fully meet the available supply.
A situation in which demand for subscriptions for an Initial Public Offering (IPO) exceeds the offering size. An oversubscribed IPO will typically trade above the offering price when it begins trading on a stock exchange.
Applied for in greater quantities than are available or expected.
Oversubscribed is a term used for when the demand for a new issue of securities, such as an IPO's shares, is greater than the number of securities offered. When a new issue is oversubscribed, underwriters or other financial entities offering the security can adjust the price upward or offer more securities to reflect the higher-than-anticipated demand.
How to use Oversubscribed in a sentence?
- Those bonds were said to be twelve to fourteen times oversubscribed.
- An oversubscribed IPO is indicates that investors are eager to buy the company's shares, leading to a higher IPO price and/or more shares offered for sale.
- An oversubscribed issue does not always mean the market will support the higher price for long, as the demand must eventually reconcile with the fundamentals.
- Oversubscribed refers to an issue of securities where demand exceeds the available supply.
Meaning of Oversubscribed & Oversubscribed Definition