oversubscription Definition
- 1the situation when there are more requests for something than can be provided or accommodated
- 2the act of subscribing for more shares, securities, or tickets than can be allotted
Using oversubscription: Examples
Take a moment to familiarize yourself with how "oversubscription" can be used in various situations through the following examples!
Example
The oversubscription of the concert tickets led to a lottery system.
Example
The school's oversubscription policy resulted in many students being waitlisted.
Example
The company's IPO was oversubscribed, with investors clamoring for shares.
oversubscription Synonyms and Antonyms
Synonyms for oversubscription
- overbooking
- overdemand
- overload
- overallocation
Phrases with oversubscription
the ratio of the number of shares applied for in an IPO to the number of shares actually available
Example
The oversubscription ratio for the company's IPO was 3:1.
the right of existing shareholders to subscribe for additional shares in proportion to their existing holdings before they are offered to the public
Example
The company's oversubscription privilege allowed current shareholders to increase their stake in the company.
a fee charged by underwriters for the allocation of shares in an oversubscribed IPO
Example
The oversubscription fee for the IPO was 2% of the total subscription amount.
Summary: oversubscription in Brief
Oversubscription [ˌəʊvəsəbˈskrɪpʃ(ə)n] refers to a situation where there are more requests for something than can be provided or accommodated. It is often used in the context of shares, securities, or tickets, and can result in a lottery system or waitlist. Examples include the oversubscription of concert tickets and the oversubscription policy of schools. Oversubscription extends into phrases like 'oversubscription ratio,' denoting the number of shares applied for in an IPO, and 'oversubscription privilege,' allowing current shareholders to increase their stake in a company.
