over-issue

A company must avoid the over-issue of its shares.

Definition

1. Noun (countable):

   • An excessive issue: "over-issue" refers to the act or instance of issuing more of something (such as shares of stock, currency, or securities) than is authorized, permitted, or prudent, often leading to inflation or dilution of value.

2. Verb (transitive):

   • To issue excessively: "over-issue" means to issue too many items (especially financial instruments like stocks or banknotes) beyond the legal or practical limit, causing a surplus.

Usage Examples

• Noun:

  • The company’s over-issue of shares led to a drop in stock price. (An excessive issuance of stock beyond the authorized amount.)
  • The central bank warned against an over-issue of currency. (An issuance of too much money into circulation.)

• Verb:

  • The government over-issued bonds, causing inflation. (The government issued more bonds than the market could absorb.)
  • The firm over-issued its securities to raise quick capital. (The firm issued too many securities without proper authorization.)

Advanced Usage

• "over-issue of stock": a specific financial context where a corporation issues more shares than its charter allows.

  • The shareholders sued the board for the over-issue of stock. (The board exceeded its legal authority in issuing shares.)

• "to over-issue currency": to print or mint more money than the economy can support, leading to devaluation.

  • Hyperinflation occurred when the government over-issued currency. (Too much money was printed, causing rapid price increases.)

Variants and Related Words

• Over-issuance (noun): the process or result of issuing too much.

  • The over-issuance of credit cards led to widespread debt. (The excessive distribution of credit cards.)

• Over-issuer (noun): an entity that engages in over-issuing.

  • The bank was labelled an over-issuer of mortgage-backed securities. (The bank issued too many such securities.)

Synonyms

• Oversupply: an excessive amount of something produced or issued.
• Overproduction: the act of producing more than needed.
• Dilution: in finance, the reduction in value of shares due to excessive issuance.

Phrasal Verbs

• No common phrasal verbs are directly formed with "over-issue." The term is typically used as a compound verb (e.g., "to over-issue bonds") rather than a phrasal verb.

Related Idioms

• "Printing money": an idiom referring to the over-issue of currency, especially by a central bank.

  • The government started printing money to pay debts, leading to an over-issue of currency. (The government issued too much money without backing.)

• "Flood the market": to release an excessive amount of a product (including securities or currency) into the market.

  • The over-issue of shares flooded the market, causing prices to plummet. (Too many shares were issued at once.)