ISSUE MARGIN Meaning and
Definition
-
Issue margin refers to the additional amount of securities that can be issued by a company in relation to an existing financial instrument or security. It represents the difference between the maximum quantity of securities a company is authorized to issue and the number of securities currently outstanding. This margin provides flexibility for the company to expand its capital base and raise additional funds if needed.
The issue margin is typically determined at the initial issuance of a security and is specified in the company's governing documents, such as its articles of incorporation or articles of association. It outlines the maximum number of shares, bonds, or other securities that may be issued, and any changes to this margin generally require approval from shareholders.
Companies utilize the issue margin to engage in various financial activities, including capital fundraising for expansion projects, acquisitions, or debt repayment. By having the ability to issue additional securities, a company can attract investments and generate capital without needing to alter its existing capital structure significantly.
It is important to note that the issue margin sets the limit for authorized but unissued securities; it does not imply an obligation to issue them. The issuance of additional securities within the issue margin is a strategic decision made by the management and board of directors after considering various factors such as market conditions, financing needs, and shareholder interests.
Common Misspellings for ISSUE MARGIN
- ussue margin
- jssue margin
- kssue margin
- ossue margin
- 9ssue margin
- 8ssue margin
- iasue margin
- izsue margin
- ixsue margin
- idsue margin
- iesue margin
- iwsue margin
- isaue margin
- iszue margin
- isxue margin
- isdue margin
- iseue margin
- iswue margin
- issye margin
- isshe margin
Etymology of ISSUE MARGIN
The etymology of the term "issue margin" can be understood by examining the origins of each word individually.1. Issue: The word "issue" originated from the Latin word "exitus" which translates to "going out" or "result". Over time, "exitus" evolved into the Old French word "issue" which meant "a flowing out". In the English language, "issue" refers to a topic, problem, or concern that needs to be dealt with or resolved.2. Margin: The term "margin" has its roots in the Latin word "margo" which means "edge" or "border". In medieval Latin, "margo" was used in the context of a blank space or border left around a written or printed page. In English, "margin" refers to the blank area around the edges of a page, as well as the space between two things or the limits of variation or tolerance.
