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Hot Issue

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Hot Issue
An issue that sells at a Premium over the public offering price on the first day of trading.
    
A "hot issue" is an IPO that is in Heavy demand. In such a case the indications of Interest from prospective purchasers received by the Broker-dealers Underwriting the issue far exceeds the number of shares that the issuing company plans to sell. For example, if Hot Biotech Inc. proposes to issue 5 million shares of its stock at $12 per share, yet there is a demand for 10 million shares that is a "hot issue".

During 1998-99, many internet stocks shot up dramatically in price. These stocks are examples of hot issues.

Initial Public Offerings (IPO's) are the first time a company sells its stock to the public.
Posted by  Spintelligent (Pty) Ltd
 
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