• New issues, whether stocks or bonds, are a means of raising capital for a company.

  • New shares are often issued through an initial public offering (IPO), which allows investors to buy shares of a previously private company for the first time.
  • Bonds, preferred and convertible securities can also be distributed as new issues to raise debt capital for the firm.
  • Bonds as new issues are considered a form of debt financing, while shares and IPOs as new issues are considered a form of equity financing.
  • Investors should be aware of the “hype” surrounding a new issue such as an IPO as it could go one way or the other.
  • Companies that are already public can conduct a new issue through a secondary offering.