OVERSOLD Definition

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OVERSOLD is the state of the market when much more selling occurs than is warranted by market conditions. If investors and speculators sell large amounts of securi­ties, including short sales, over a period of time, at some point the market will become oversold and buying is likely to increase. Depending upon the degree of buying, prices will either stop falling or will rise. A rise in prices under these conditions is known as a technical rally.

Learn new Accounting Terms

PROFIT CENTER is a section of an organization that is responsible for producing profit, e.g., a division of a corporation that is not a stand-alone entity but is required to produce profits within the corporation.

ADMITTED VALUE see ADMITTED ASSETS.

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