Undersubscription: meaning, definitions and examples
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undersubscription
[ˌʌndərsəbˈskrɪpʃ(ə)n ]
Definition
financial
A situation where the demand for a particular security is less than the number of shares or bonds available for sale.
Synonyms
underallocation, underperformance, underselling.
Which Synonym Should You Choose?
Word | Description / Examples |
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undersubscription |
This term is typically used in finance and investment to describe a situation where the demand for a public offering of stocks or securities is less than the available supply.
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underallocation |
This term is used to refer to a situation where resources (such as funds, materials, or personnel) are distributed in insufficient quantities, often in planning and project management.
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underselling |
This term is used in a negative context to describe selling goods or services at a price lower than their value or competitors' prices, which can imply a lack of proper valuation or desperation.
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underperformance |
This word is often used to describe the failure to perform as well as expected or required, common in business, sports, and education.
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Examples of usage
- Due to the undersubscription of the IPO, the company had to lower the offering price.
- The undersubscription of the government bond issue was a sign of weak investor interest.
Interesting Facts
Etymology
- The prefix 'under-' means less than or below, while 'subscription' comes from Latin roots meaning to sign up or agree.
- The term is often used in business contexts to indicate a lack of anticipated interest or participation.
Economics
- In finance, undersubscription can affect fundraising rounds where fewer investors pledge to buy shares than expected.
- It also applies to goods or services that have more supply than demand, leading to potential losses.
Marketing
- Marketers analyze undersubscription to adjust their strategies, ensuring offerings meet customer interests.
- Surveys and feedback are often used to understand why certain products or services didn't attract enough subscribers.
Technology
- In the tech industry, software subscriptions may face undersubscription when users feel competitive options provide better value.
- Emerging technologies often require adjusting marketing and education efforts to overcome undersubscription challenges.
Education
- Undersubscription can occur in educational programs or courses that fail to draw sufficient student interest.
- This prompts institutions to revamp their offerings or enhance outreach efforts to boost enrollment.
Translations
Translations of the word "undersubscription" in other languages:
🇵🇹 subinscrição insuficiente
🇮🇳 अधिसूचना कम होना
🇩🇪 Unterzeichnungsmangel
🇮🇩 kurangnya langganan
🇺🇦 недопідписка
🇵🇱 niedosubskrypcja
🇯🇵 購読不足
🇫🇷 souscription insuffisante
🇪🇸 suscripción insuficiente
🇹🇷 yetersiz abonelik
🇰🇷 구독 부족
🇸🇦 نقص الاشتراك
🇨🇿 nedostatečný odběr
🇸🇰 nedostatočný odber
🇨🇳 认购不足
🇸🇮 nezadostna naročnina
🇮🇸 ófullnægjandi áskrift
🇰🇿 жеткіліксіз жазылу
🇬🇪 ნაკლები გამოწერა
🇦🇿 kifayət qədər abunəlik yoxdur
🇲🇽 suscripción insuficiente