Investment DictionaryShare 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. | Recommended Topics Investment psychology gains momentum in contemporary business world Balance Sheet Most Popular Articles Investing in Gold (I) Investing in Gold (II) Investing in Uncertain Period
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