Oversubscription is a situation where the

number of shares applied for is equal to the number of shares issued.

number of shares applied for is more than the number of shares issued.

number of shares applied for is less than the number of shares issued.

face value of the share is less than the issue price of the share.

Solution

Correct option is B

Oversubscription occurs when the demand for shares exceeds the number of shares issued, meaning more shares are applied for than are available. This typically happens during public offerings when the company's shares are highly sought after, indicating strong investor interest and confidence in the company’s prospects.