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.