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Oversubscription
A privilege provided for existing shareholders in a company when the company issues a rights or warrants offering, enabling them to "subscribe for" (purchase) extra shares not picked up by the remaining shareholders. When a company issues a rights offering (the more common of the two), existing shareholders are given the option to essentially maintain their current percentage ownership of the company by acquiring the rights to further shares. If any current shareholders decide to not accept all of the rights that they are eligible for, these extra rights/warrants become available to the rest of the shareholders at a predetermined ratio (such the "right" to purchase .25 shares for every existing share held). There will always be a maximum number of rights or warrants available on the whole, and should there be more oversubscription demand than supply available, whatever is left over will be allocated on a pro-rata basis to those who pick up their oversubscription privilege.
Prospectus
1. A formal legal document describing details of a corporation. The prospectus is generally created for a proposed offering (usually an IPO), but it can still be obtained from existing businesses as well. The prospectus includes company facts that are vitally important to potential investors.
2. In the case of mutual funds, a prospectus describes the fund's objectives, history, manager background and financial statements.
Corpporate Governance
The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy and rule of law.
Suspension of trading
A temporary suspension in the trading of a particular security on one or more exchanges, usually in anticipation of a news announcement or to correct an order imbalance. A trading halt may also be imposed for purely regulatory reasons. During a trading halt, open orders may be canceled and options may be exercised.