Undersubscription: meaning, definitions and examples

💰
Add to dictionary

undersubscription

 

[ ˌʌndərsəbˈskrɪpʃ(ə)n ]

Context #1

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

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

Word origin

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.