An investor who applies for shares in a company’s new issue. Sometimes, if the company is seen to be a very good investment, the shares will be heavily “over-subscribed”. In this situation, the investor may only get a fraction of the shares that he applied for – or none. The balance of the investors’ money would then be returned to them together with whatever shares they had been allocated. If there are insufficient applications to allow the “minimum subscription” to be raised, then the issue is cancelled and all applicants must be repaid their money. The more heavily over-subscribed a share is, the more highly rated it is. Thus, a share like Dischem was seven times over-subscribed at its listing in November 2016. Any adult can be an applicant for shares. To do this you will need to open a stockbroking account with a registered stockbroker.

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