Term used to describe a new stock issue in which the buyers want more shares than are available. see also subscribe.
(of a new share issue) - one for which there are more buyers than shares available.
When an IPO has more buyers than there are shares. Typically, hot IPO offerings are oversubscribed.
When the demand for shares in a new listing exceeds supply, the issue is said to be oversubscrived. There may be an opening premium in this case.
Refers to an initial public offering where the underwriter has the ability to sell more shares than it has agreed to purchase in a firm commitment offering. Underwriters try to achieve this condition, and then exercise the over allotment option ("green shoe") to fill those orders. This results in additional profits for the underwriter, and additional proceeds from the offering for the company. Typically an oversubscribed offering will trade at a premium in the after market.
sold in excess of available supply especially season tickets; "the opera season was oversubscribed"
A situation in which investors have expressed an interest in buying more shares of a new security than will be available. Under this condition, the price of the security has a greater likelihood of opening higher in the secondary market than is the offering price.
When investors apply for more IPO shares than are available. This is usually an indication that the IPO is a hot issue and will trade initially at a higher price than the initial price offering.
When an Initial Public Offering has more applications than actual shares available. Investors will often apply for more shares than required in anticipation of only receiving a fraction of the requested number. Investors and underwriters will often look to see if an IPO is oversubscribed as an indication of the public's perception of the business potential of the IPO company.
an issue of stock in which the value of applications exceeds the amount to be issued. Semi government authorities and corporates are allowed to take oversubscriptions up to a given amount through their prospectuses.
When there are more buyers than available shares in an IPO.
Term used when a new stock issue has more potential buyers than shares. The stock will usually rise in price when it starts trading on the open market as buyers who could not previously purchase the issue will now do so. See: Hot Issue; New Issue
When a deal has more orders than there are shares available it is said to be oversubscribed. Many underwriters like to see a book several times oversubscribed because they know that investors inflate the size of their indications of interest. When a book is grossly oversubscribed it is said to be a hot deal.
Where the number of applications for the relevant year group in an admission year exceeds the admission number.
The situation where application for a new issue exceed the amount available.
is when a new issue attracts more applications that there are shares available.
Circumstances where people have applied for more shares than are available in a new issue.
Defines a deal in which investors apply for more shares than are available. Usually a sign that an IPO is good deal and will open at a substantial premium.
A term used to describe programs or classes for which more qualified applications are submitted than seats available.
When the demand for a new issue of securities (IPO) exceeds the number of shares issued.