Written by:
Image
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades.

Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

View all posts
Updated October 5, 2020

What is a New Issue?

A new issue is a never-before-offered security.

How Does a New Issue Work?

Let's assume that Company ABC makes a public offering of shares in order to finance its business expansion. Company ABC, the issuer of the stock, must file a prospectus with the Securities and Exchange Commission (SEC) summarizing the stock offering, associated risk and financial information of the company. Because Company ABC has never issued stock before, the offering is a new issue.

Initial public offerings are the most common new issues. However, companies, governments or other entities also can make new issues of bonds, notes, commercial paper or preferred stock.

Why Does a New Issue Matter?

Issuers are legally responsible for the securities they issue. To fulfill their legal obligations to investors, they must follow strict reporting standards as set by the SEC, including quarterly reporting of financial performance and conditions, material developments and all operational activities required by regulations in the jurisdictions of the security.

Ask an Expert about New Issue
At InvestingAnswers, all of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about New Issue.
Be the first to ask a question

If you have a question about New Issue, then please ask Paul.

Ask a question

Read this next

Don't Know a Financial Term?
Search our library of 4,000+ terms
 - profile
Ask an Expert about New Issue

By submitting this form you agree with our Privacy Policy

Share
close