👉 Overbuying in finance refers to an investment or purchase of securities where a buyer purchases more shares than they need, resulting in an excess amount that is not used for the purpose it was intended. This excess can cause a loss if the price of the stock falls after the purchase has been made. For example, if you buy 100 shares of a company's stock at $5 per share and sell them all at $7 per share, you would have purchased more than what was needed
