Question

what do you mean by oversubscription​

Answer 1

Oversubscription is a situation where investors exhibit an interest in a new security issue that the demand exceeds supply.

• It is defined as over-subscription of shares when a company receives requests for shares more than the number of shares it has offered to the public.
• Businesses with a strong financial record or a good market reputation or positive prospects for the future earn over-subscription of stocks.
• When shareholders demand more shares than shares are released, it is said that the security is oversubscribed. When the protection is actually issued, this can affect the price.

Answer 2

Over subscription.

Explanation:

• It is the term in which the number of supplies becomes less than its demand.
• As in when the customer shows more interest in the new features and demands for more products.
• In this case, the supply gets less by increasing its demand, this term is called over subscription.
• It can affect the price of the issued product.
• The demands increase by the multiple of two.

Learn more about over subscription.

What is meant by Oversubscription of shares?

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