Legal Definitions - original issue

Original issue refers to the initial creation, release, or distribution of something, often a financial instrument or a legal document, directly from its source or issuer for the very first time. It marks the point when an asset, right, or security first enters circulation or is formally established.

• Example 1: Corporate Stock Offering

  A rapidly growing software company decides to raise capital by offering its shares to the public for the first time through an Initial Public Offering (IPO). During this process, the company sells millions of newly created shares directly to institutional and individual investors.

  This is considered the original issue of the company's stock because these shares are being created and distributed by the company itself, marking their initial entry into public ownership. Any subsequent trading of these shares between investors on the secondary market would not be an original issue, as the shares are merely changing hands.

• Example 2: Government Bond Sale

  To fund the construction of a new high-speed rail line, a national government announces a sale of treasury bonds directly to investors. These bonds promise a fixed return over a set period and are offered to the public for subscription.

  These treasury bonds represent an original issue because they are new debt instruments created and sold by the government to raise capital for the first time. The government is the issuer, and these are the initial bonds entering the financial market from that specific offering, distinct from existing bonds being traded.

• Example 3: Patent Grant

  An engineer invents a groundbreaking new material for aerospace applications and successfully navigates the application process with the national patent office. After a thorough examination, the patent office officially grants and publishes the patent, providing the engineer with exclusive rights to the invention.

  The official grant and publication of this patent constitute its original issue. This is the first time the exclusive legal right to the invention is formally established and documented by the government, marking its initial legal existence and protection.