Undigested Securities

You know when you have big meal of securities, and a few hours later you can still feel them, like a rock in your stomach? Ugh. It's going to be a long night. One kind of undigested securities.

The other kind has to do with selling securities...though the underlying feeling is the same. The term relates to an attempt to sell securities that...doesn't go well. You're looking to sell 3 million shares, but can only place 2.5 million of them. You have shares you can't sell at the offering price; they are undigested by the market.

The existence of undigested securities suggests a lack of demand on the part of investors. It indicates that a drop in price might be necessary to sell the entire offering amount.