Oversubscribed issue explained.

If you have ever dealt with the initial public offering (IPO), you might heard of the term oversubscribed issue. This term is used when the number of stocks available is lower than the demand. Therefore, it might lead to higher prices in the shares of a company. In this case, in order to reflect the high demand, financial entities such as underwriters can adjust the securities’ price upward or offer more securities. On the other hand, the undersubscribed issue is the opposite of the oversubscribed issue, and it refers to a situation when the demand is lower than expected.

Oversubscribed issue explained.