Undersubscription: meaning, definitions and examples
💰
undersubscription
[ ˌʌndərsəbˈskrɪpʃ(ə)n ]
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 |
|---|---|
| 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.
|
| 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.
|
| 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.
|
| underperformance |
This word is often used to describe the failure to perform as well as expected or required, common in business, sports, and education.
|
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.
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
Etymology
The term 'undersubscription' originated in the financial industry to describe a situation where the demand for a security is less than the supply. This can lead to price adjustments and lower-than-expected returns for issuers. The concept highlights the importance of market demand and investor interest in determining the success of offerings. Understanding undersubscription is crucial for companies, investors, and financial professionals involved in securities trading.