Undersubscription: meaning, definitions and examples

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undersubscription

 

[ˌʌndərsəbˈskrɪpʃ(ə)n ]

Definition

Context #1 | Noun

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?

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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.

  • The recent IPO faced an undersubscription, leading to fewer shares being sold than expected
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.

  • The underallocation of budget to the marketing department resulted in inadequate campaign efforts
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.

  • The company was accused of underselling their products during the clearance sale, impacting market prices adversely
underperformance

This word is often used to describe the failure to perform as well as expected or required, common in business, sports, and education.

  • The underperformance of the sales team this quarter has raised concerns among the senior management

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