Meaning of oversubscriber | Babel Free

Definitions

Someone who subscribes to a larger amount of stocks than there are available.

Examples

“When there is no investment banker acting as the residual buyer, and there is the probability that at least some of the stockholders will fail to either exercise or sell their rights, the risk exists that some of the stock will remain unsold. This danger can be eliminated by making available more stock to those who will exercise the right through instituting the privilege of over subscribing—that is, allowing stockholders to buy more shares at the subscription price in proportion to their purchases. In this way, if there are some nonexercised rights, they are allocated to the oversubscribers.”

CEFR level