Definition of seasoned-issue

Definition of Seasoned Issue

A company whose securities are already trading in the secondary market issues new securities. Seasoned Issue is also known as “seasoned equity offering”.

Explanation

A seasoned new issue of common stock can build using a cash offer or a rights offer. Underwriting firms handle the seasoned issues just like they handle initial public offerings. The only difference is that the price of the new shares is based on the market price of the outstanding shares. Seasoned issues can perceive as the company is having financial problems that may result in the downfall of share prices.

Previous Post
Newer Post