Overhang refers to a part of a structure that extends beyond its base or support. This can be seen in buildings, where balconies or roofs extend outward, creating a space that is not directly supported by the ground. Overhangs can provide shade, protect walls from rain, and enhance the aesthetic appeal of a structure. In finance, overhang describes a situation where there is an excess supply of a particular asset, such as stocks or bonds, that can limit price appreciation. This often occurs when investors hold onto large amounts of an asset, creating uncertainty in the market. The term is commonly used in discussions about real estate and stock markets.