For the term of the same name in the art, see oversubscription (art)

Of an oversubscription one speaks, if a corporation its shares at the stock exchange emitted and with this stock exchange course are inquired than offered to more shares.

Before the stock exchange course the prospective customers of a bank, which introduces the shares at the stock exchange, know its Kauforders communicate to draw (share purchases). Their names and the desired number of the shares are seized.

Normally is this act With an enterprise, whose shares are very desired because of its future hopes, the high demand can lead to an oversubscription of the share issue. The prospective customers receive then fewer shares, than they ordered.

See also: Bookbuilding procedure, Greenshoe

Articles in category "Oversubscription"

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