Undersubscribed
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Securities - sale - issue - primary market - subscription.
Undersubscribed describes a situation in a new securities issue subscription process.
When the issue is "undersubscribed", fewer commitments to buy are received from the market than the number of available securities.
- Sub-underwriter's commitment
- "A sub-underwriter is a member of a new issue syndicate who agrees to buy a certain proportion of the issue from the managers should the issue be undersubscribed.
- They receive an underwriting fee and a selling concession on the principal amount of the securities for which they may subscribe."
- Sub-underwriter - the Treasurer's Wiki.