over subscribed

mooner48

hi, can shares in any particular company ever be over subscribed or 'sold-out' .I'm talking about a major FTSE100 company. thanks ....

bigstevex

shares in vw were nearly all gone the other month when porsche got their own back on the short selling hedge funds! caused their shares price to treble in a day or something stupid!

steady__eddie

If memory serves correct (a rare occurence nowadays) I seem to recall that B.A.A. were a tad oversubscribed when they were first floated years ago and the allocations were cut back considerably. I only got 100.

agsnu

The question doesn't really make any sense - the buying and selling of shares is a marketplace, where transactions occur between external parties. Normally you're not buying new shares issued by the company directly (that's what's known as a "rights issue").

You could be stuck in a situation whereby there was no liquidity in the market, i.e. there weren't enough people buying and selling shares off each other to enable your broker to fulfill your order. This is very unlikely for FTSE 100 companies, though.

mooner48

thanks for the replies,
So theoreticly, if nobody was selling any of the shares they hold they could be deemed to be 'sold-out'.....

bigstevex

thats correct to put it simply yes

gozomark

the price would keep going up until someone decided to sell (or maybe the company would issue new shares)

benood

mooner48 wrote: »

thanks for the replies,
So theoreticly, if nobody was selling any of the shares they hold they could be deemed to be 'sold-out'.....

Not really, IMO. Shares are a store of wealth and don't get consumed.

Perhaps you would get a better answer if we understood why you asked the question?

mooner48

I was just wondering what would happen if the big investors sitting on their cash decided that the market had finally reached its bottom and were to pile back in buying shares, could they effectively clean up the best options and squeeze out the small investor.Purely hyperthetical...