WHEN ISSUED Meaning and
Definition
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"When issued" is a term used in financial markets to refer to a conditional trading process for securities or other financial instruments that have been announced or made publicly available, but are not yet officially issued or available for regular trading. It typically pertains to new securities or those undergoing significant changes, such as stock splits, rights offerings, or when a new company is about to be publicly listed.
During the "when issued" period, interested parties can engage in pre-market trading, where the potential buyers and sellers can express their intentions to trade the securities once they become officially available. This type of trading allows investors and traders to speculate on the future value of the securities and facilitate early price discovery.
The trading of securities on a "when issued" basis is subject to specific conditions and restrictions, including limited participation, abbreviated settlement periods, and potential cancelation or amendment of the offering. Generally, the securities are labeled with "when issued" or "WI" to indicate their provisional nature.
Once the issuer fulfills all necessary requirements and officially releases the securities, they transition from the "when issued" stage to regular trading status. At this point, the financial instruments can be freely traded on the market.
The "when issued" period contributes to overall market efficiency and transparency by allowing participants to assess the initial demand and value of the securities before they are widely available. It provides investors with an opportunity to adjust their strategies and positions accordingly based on the market sentiment during this preliminary trading phase.
Common Misspellings for WHEN ISSUED
- qhen issued
- ahen issued
- shen issued
- ehen issued
- 3hen issued
- 2hen issued
- wgen issued
- wben issued
- wnen issued
- wjen issued
- wuen issued
- wyen issued
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- whsn issued
- whdn issued
- whrn issued
- wh4n issued
- wh3n issued
- wheb issued
- whem issued
Etymology of WHEN ISSUED
The term "when issued" originated in the world of finance and securities trading. The word "when" is derived from Middle English "whenne", which comes from Old English "hwanne", meaning "at what time". "Issued" is the past participle of the verb "issue", which comes from the Latin word "issuere", meaning "to send out".
In finance, "when issued" is used to describe a security that has been authorized for issuance but not yet made available for trading. It signifies that the security will be traded on a specified future date. The term is commonly used in situations such as stock splits, initial public offerings (IPOs), dividend distributions, or new bond issuances.
