Over-subscription occurs when a company issues a large number of shares to raise capital. This can lead to a significant increase in the company's share capital...
Over-subscription occurs when a company issues a large number of shares to raise capital. This can lead to a significant increase in the company's share capital and a decrease in the company's per share value. For example, if a company issues 100,000 shares at a price of 1,000,000. The company's per share value would then decrease from 0.10.
Under-subscription occurs when a company issues a large number of shares to raise capital, but the company's share price does not increase as much as expected. This can lead to a significant decrease in the company's share capital and an increase in the company's per share value. For example, if a company issues 100,000 shares at a price of 8, the company's share capital would decrease by 1 to $0.80