What is meant by Undersubscription of Shares?
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If the number of shares applied by the public is less, the issue is said to be under-subscribed, if more, then it is said to be over-subscribed; for example if a company invites applications for 10,000 shares and applications are received from public for 8,000 shares the issue is said to be under- subscribed.
basically Undersubscribed" refers to a situation in which the demand for an issue of securities such as an initial public offering (IPO) or another offering of securities is less than the number of shares issued.
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