When a company receives application for subscriptions to the shares of the company much more than the issued capital, the issue is called __________.

Oversubscribed

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Under subscribed

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Overwhelmed issue

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Flopped show

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Solution

The correct option is A Oversubscribed
Oversubscribed is the term for when the demand for a company's IPO shares is greater than the number of shares issued. That is, a situation in which investors have expressed an interest in buying more shares of a new company than will be available.

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