Oversubscribed – Explained

Oversubscribed refers to a situation in which demand for a product or service exceeds the available supply. This term is often used in business, finance, and economics to describe a scenario where there is more demand for something than there is available.

For example, if a company has 100 units of a product and receives 120 orders for that product, the company is said to be oversubscribed. In this case, the company will not be able to fulfill all of the orders, and it may need to prioritize which orders to fill first.

Oversubscription can also occur in financial markets, such as when a new stock offering is oversubscribed, meaning that there are more buyers than there are shares available. In this case, the underwriters may need to allocate shares based on factors such as the size of the order, the reputation of the buyer, or other criteria.

In summary, oversubscribed refers to a situation where demand exceeds supply, causing competition for limited resources.

Few examples of oversubscription:

  1. Product launch: If a company launches a new product and receives more orders than it can supply, the company is oversubscribed.
  2. Concert tickets: If a popular band announces a concert and ticket sales exceed the available seating capacity, the tickets are oversubscribed.
  3. IPO (Initial Public Offering): When a company goes public and there are more buyers interested in purchasing stock than there are shares available, the IPO is oversubscribed.
  4. Real estate: When there are more potential buyers interested in purchasing a property than there are properties available, the real estate market is oversubscribed.
  5. Crowdfunding campaigns: If a crowdfunding campaign receives more pledges than it can fulfill, the campaign is oversubscribed.
  6. University admissions: When there are more applicants to a university than there are available spots, the university is oversubscribed.

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