Investing for Beginners , investing

investingforbeginners.eu Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed.
Benjamin Graham

Investment Dictionary


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Share Issue

 

Share issue may refer to a new share issue or an existing one. An issue of new shares is associated with capital increase of a company during IPO (initial public offering) or SPO (secondary public offering). All existing company’s shares may belong to one issue or to several different ones if there were several different share issues in the past, however, even from different issues shares mostly are identical, though sometimes there can be few different classes of shares. 

 

New share issue is an instrument to raise the capital for the company. If company needs capital for growth and for some reasons debt capital is not effective, the best choice can be a share issue which can be sold to existing shareholders or to new investors. It is easier to sell shares from new issue when company is public.






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