OVER-SUBSCRIBED
12 May 2016 By PDSNETWhen a company raises new capital by selling shares to the public they invite applications for a limited quantity of shares. If the company is perceived as having a bright future, then sometimes it receives far more applications than it has shares to sell. This is called over-subscription. When this occurs, the directors of the company determine the basis on which the available shares are issued. Normally, the larger applications will receive the lions share of what is available with smaller applications getting only 100 shares and sometimes nothing. That part of any application which is not filled is then refunded to the applicant.
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