Definition of New Issue

New Issue refers to a security that is issued, registered, and sold in a market for the first time. It doesn’t necessarily refer to the newly issued stocks, although the initial public offerings are one of the most commonly known new issues. Both debt and equity are the types of securities which can be newly issued. New issues are also known as primary shares or new offerings.

Points to remember:

• Subsequent new issues might tend to come after the initial public offerings, but only one IPO can be there.
• The new issue of stocks is recorded on the balance sheet of the company as paid-in capital.
• The widely recognized kind of new issue is known as an initial public offering. This is the very first sale of the shares of a company.