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Issue (Process)

The issue process refers to the procedure by which a company, government, or other entity sells new securities, such as stocks, bonds, or other financial instruments, to raise capital. This process typically involves underwriters, regulatory approvals, and the creation of a prospectus. Securities can be issued through an initial public offering (IPO), a bond offering, or a private placement, depending on the entity’s needs and market conditions.

Example

A technology company decides to issue new shares through an IPO, working with an investment bank to underwrite the process and file the necessary documents with regulators.

Key points

Refers to the process of selling new securities to raise capital.

Involves underwriters, regulatory approvals, and the creation of a prospectus.

Securities can be issued through IPOs, bond offerings, or private placements.

Quick Answers to Curious Questions

The goal is to raise capital for business operations, expansion, or other financial needs by selling new securities to investors.

The process involves regulatory approvals, prospectus creation, and working with underwriters to price and sell the securities.

Companies choose based on factors such as capital needs, market conditions, and regulatory requirements.
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