Pronunciation: [ˈɪʃuː pɹˈa͡ɪs] (IPA) 
The term "issue price" is spelled /ˈɪʃu praɪs/. This means that the first syllable, "issue," is pronounced with a short "i" sound and a voiced "zh" consonant. The second syllable, "price," is pronounced with a long "i" sound and a voiceless "s" consonant. The "e" at the end of "price" is silent. The term refers to the initial price at which a stock or bond is offered to the public by a company or organization.
The term "issue price," in financial context, refers to the price at which a security or financial instrument is initially offered to the public during an initial public offering (IPO) or a new issuance in the primary market. It represents the value at which a company or government entity sells its shares or bonds to investors when they are first made available for purchase. The issue price is determined based on various factors such as market conditions, demand for the security, the company's financial health, and the overall economic environment.
For stocks, the issue price is usually set by a syndicate of underwriters who analyze the company's financials, industry, and market conditions to determine an optimal offering price. This price is intended to strike a balance between attracting sufficient investor interest and maximizing the funds raised for the issuing company. In the case of bonds, the issue price is typically set as a percentage of the face value and may include a coupon rate.
The issue price is a crucial element in the process of raising capital as it directly affects the amount of money a company or government can generate from the offering. It determines the initial valuation of the security and is often a significant factor in determining investor sentiment towards the company. After the initial offering, the issue price may fluctuate based on market forces, supply and demand dynamics, and other factors.
The word "issue price" has its origins in Old French and Latin.
The term "issue" comes from the Old French word "isue", which means "to go out" or "to be produced". It can be traced back to the Latin word "exitus", meaning "a going out" or "an exit".
The word "price" originates from the Latin word "pretium", which signifies "value", "price", or "reward".
When used together, "issue price" refers to the price or value at which securities, such as stocks or bonds, are offered or released for sale to the public. The term is commonly used in finance and investment contexts.
