Stock overhang is a phrase used to describe a sizeable block of shares (or, for that matter, of securities, commodities, contracts, and so on) which, if it were to be released in the market in one go, would flood it, and so put downward pressure on prices.
For example, if an institutional investor is known to be trying to offload a large holding, it is said to be overhanging the market. This will tend to depress the share price of the company concerned until all the stock has been sold.
Other examples might be shares held in a dealer's inventory or a large commodity position about to be liquidated. If you become aware of the overhang early enough, your best bet might be to sell.
Should your business invest in a VoIP phone service?
Here's what you need to know about VOIP (voice over IP) services before landlines go digital in 2025.
By David Prosser Published
M&S is back in fashion: but how long can this success last?
M&S has exceeded expectations in the past few years, but can it keep up the momentum?
By Rupert Hargreaves Published