HopefullyInLawSchool
16:06
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
stock issue
Read a random definition: prudent-operator standard
A quick definition of stock issue:
A stock issue is when a company offers a class or series of securities for sale. This can include stocks or bonds. It is a way for the company to raise money. Sometimes, a new issue is sold for the first time to raise working capital. After the initial offering, the securities can be traded in the open market. If the securities are traded at a substantially higher price, they are called hot issues.
A more thorough explanation:
Definition: A class or series of securities that are simultaneously offered for sale.
Example: A company decides to issue 1 million shares of stock to raise money for expansion.
Explanation: When a company wants to raise money, it can issue stocks or bonds. Stock issue refers to the process of offering a specific number of shares of stock to the public for purchase. In the example, the company is offering 1 million shares of stock to investors who want to buy a piece of ownership in the company. The money raised from the stock issue can be used for various purposes, such as expanding the business or paying off debt.