New Issue
A reference to a security that has been registered, issued and is being sold on a market to the public for the first time. New issues are sometimes referred to as primary shares or new offerings. The term does not necessarily refer to newly issued stocks, although initial public offerings are the most commonly known new issues. Securities that can be newly issued include both debt and equity. Investopedia Says:
Many investors buy new issues because they often experience tremendous demand and, as a result, rapid price increases. Other investors don't believe that new issues warrant the hype that they receive and choose to watch from the sidelines. An investor who purchases a new issue should be aware of all the risks associated with investing in a product that has only been available to the public for a short time; new issues often prove to be rather volatile and unpredictable. Related Terms:
Deficiency Letter
Direct Public Offering - DPO
Greensheet
Greenshoe Option
Gun Jumping
Initial Public Offering - IPO
Lock-Up Agreement
Public Offering Price - POP
Red Herring
Teaser |