Seasoned Security
1. A financial instrument that has been publicly traded in the secondary market long enough to eliminate any short-term effects from its initial public offering.
2. Any security that has been issued and actively traded in the Euromarket for at least 40 days. Investopedia Says:
1. When new securities are first offered through an initial public offering (IPO), they can exhibit substantial volatility immediately following their listing. Seasoned securities have already been on the market for a while, making them more predictable than newly-listed securities due to price and trading volume stability.
2. Before the sale of a Euromarket security can be made to certain U.S. investors, the security must trade on the market for a minimum of 40 days. Related Terms:
Initial Public Offering - IPO
Lock-Up Agreement
Primary Offering
Seasoned Issue
Secondary Offering
Stabilizing Bid
Underwriting |