Market overhang

The theory that in certain situations, institutions wish to sell their shares but postpone the share sales because large orders under current market conditions would drive down the share price and that the consequent threat of securities sales will tend to retard the rate of share price appreciation. Support for this theory is largely anecdotal. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Market overhang — is a term derived from the physical world meaning things that stick out or hang over another thing. Often from the viewpoint of standing beneath an overhang there is shade provided by a protrusion from the adjacent vertical domain, such as a tree …   Wikipedia

  • Market Overhang — An observational theory stating that in certain stocks at certain times, there is a buildup of selling pressure. This occurs as a combined result of sales and a strong wish to sell among those who still hold the stock but fear that selling it may …   Investment dictionary

  • market overhang — The theory that, in certain situations, institutions wish to sell their shares but postpone the sale because large orders under current market conditions would drive down the share price and that the consequent threat of securities sales will… …   Financial and business terms

  • market overhang — The situation in which sellers, worried by falling prices, prefer to postpone their sales until there is greater market demand. By reducing transactions, this behaviour can itself delay the hoped for recovery …   Big dictionary of business and management

  • Overhang — may refer to: Debt overhang, a fiscal situation of a government Market overhang, a concept in marketing Monetary overhang, a phenomenon where people have money holdings due to the lack of ability to spend them Overhang seat, a constituency seat… …   Wikipedia

  • overhang — Used in the context of general equities. Sizable block of securities or commodities ( commodity) contracts that, if released on the market, would put downward pressure on prices ; prohibits buying activity that would otherwise translate into… …   Financial and business terms

  • overhang — noun a large quantity of shares or of a commodity or of unsold stock available for sale, which has the effect of depressing the market price ■ verb ♦ to overhang the market to be available for sale, and so depress the share price …   Dictionary of banking and finance

  • overhang —  A large quantity of stock that is available in the market.  ► “Risks to Lucent’s share price include CUTTHROAT COMPETITION, a huge overhang of 524 million shares that AT&T plans to offer at year end, and doubts about whether Lucent will actually …   American business jargon

  • Debt overhang — is when an organization (for example, a business, government, or family) has existing debt so great that it cannot easily borrow more money, even when that new borrowing is actually a good investment that would more than pay for itself. This… …   Wikipedia

  • Advertising — This article is about the form of communication. For other uses, see Advertiser (disambiguation). Advert redirects here. For the band featuring musician Gaye Advert, see The Adverts. For content guidelines on the use of advertising in Wikipedia… …   Wikipedia

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