Definition of 'Issue'
In finance, an issue is the act of offering securities for sale to the public. This can be done through a public offering or a private placement. In a public offering, the securities are sold to the general public through a stock exchange. In a private placement, the securities are sold to a select group of investors, such as institutional investors or accredited investors.
The term "issue" can also refer to the securities themselves. For example, a company may issue new shares of stock or bonds. When a company issues new securities, it is raising capital. The capital can be used to fund new projects, expand the business, or pay off debt.
The issuance of securities is regulated by the Securities and Exchange Commission (SEC). The SEC requires companies to file a registration statement with the SEC before they can offer securities to the public. The registration statement provides investors with information about the company, the securities being offered, and the risks associated with investing in the company.
The issuance of securities can be a complex and time-consuming process. However, it is an important way for companies to raise capital and grow their businesses.
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