Market situation where the sale of an IPO or a stock is lessened because buyers are expecting its price to fall, and are therefore holding out on their purchases of the stock. This situation typically happens when a large block of stock is (or is rumored or expected to be) offered for sale, and the buyers stay under the shade (overhang) of indecision - deciding whether to buy now or later. A similar situation arises in other markets when a market leader announces a forthcoming new/improved product to thwart the success of an already available competing product.