Question

Difference between oversubscription and under subscription

Answer 1

under oversubscription a company issue shares to the general public for subscriptions it may hardly happened that it is received the applications equal to the number of shares issued does there may be the another subscription on oversubscription

Answer 2

Oversubscription means no. of shares applied is more than the shares offered for subscription. Undersubscription means no. of shares applied is less than the shares offered for subscription.

Under and Over Subscription. A company issues shares to the general public for subscription.It may hardly happen that it receives the applications equal to the number of shares issued. Thus, there may be either under subscription or oversubscription.

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