Investments glossary


Oversupply is an excessive amount of a product. Oversupply results when demand is lower than supply, resulting in a surplus. Simply put, an oversupply is when there is more product for sale than people are prepared to buy. There are many reasons why oversupply may occur. There can be an oversupply of a current product due to people waiting for an improved model in a series, such as smartphones from a particular maker. Oversupply can also occur in situations where the price of the good or service is too high and people are simply not prepared to buy it at that price. An oversupply may also simply be a case of a producer completely misreading the market demand for a product.

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