New Issue

-A reference to a security that has been registered, issued and is being sold on a market to the public for the first time. New issues are sometimes referred to as primary shares or new offerings. The term does not necessarily refer to newly issued stocks, although initial public offerings are the most commonly known new issues. Securities that can be newly issued include both debt and equity.  

Many investors buy new issues because they often experience tremendous demand and, as a result, rapid price increases. Other investors don't believe that new issues warrant the hype that they receive and choose to watch from the sidelines. An investor who purchases a new issue should be aware of all the risks associated with investing in a product that has only been available to the public for a short time; new issues often prove to be rather volatile and unpredictable.

Stock Split

-The dividing of a company's existing stock into multiple shares. In a 2-for-1 split, each stockholder receives an additional share for each share he or she holds.

In the U.K., a stock split is referred to as a "scrip issue", "bonus issue", "capitalization issue" or "free issue".   This is usually a good indicator that a company's share price is doing well. However, a stock split doesn't give you any more value, just twice as many shares.

Bonus Issue

-An offer of free additional shares to existing shareholders. A company may decide to distribute further shares as an alternative to increasing the dividend payout. These can also be known as; a "scrip issue" or "capitalization issue".  

New shares are issued to shareholders in proportion to their holdings. For example, the company may give one bonus share for every five shares held.

Junior Issue

-Generally speaking, any issue that ranks lower in claim to another issue in terms of dividends, interest, principal, etc.  

A junior issue is the opposite of a senior issue.

Seasoned Issue

-An issue of securities from an established company whose existing shares have exhibited stable price movements and substantial trading volume over time, thereby earning a good reputation.   These types of stocks have high liquidity within the secondary market.

This is also known as a Seasoned Equity Offering - SEO.

Hot Issue

-An issue that sells at a premium over the public offering price on the first day of trading.   During 1998-99, many internet stocks shot up dramatically in price. These stocks are examples of hot issues.