In finance, oversubscription refers to a scenario where investors are eager to purchase a new security, leading to a higher demand than the available supply. As a result, the price of the security is expected to open higher in the secondary market compared to its offering price. This phenomenon is often seen as a positive indication of investor confidence and market demand for the security. Oversubscription can also lead to an increase in the value of the security, benefiting both the issuer and the investors.
