Break Issue

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Dictionary Says

Definition of 'Break Issue'

A type of stock initial public offering (IPO) that trades below the original offering price to the market within the first few months after trading begins. A break issue can be the result of poor market conditions as a whole, industry concerns or lack of demand in the new issue itself.
Investopedia Says

Investopedia explains 'Break Issue'

If several IPOs drop below their original offering price in a short period of time, private companies looking to go public (and the underwriters looking to take them there) may delay their security filings, as investor demand would be deemed low. Any one IPO will rise or fall on its own merits, but a trend of poor performance may signal that the timing just isn't right to make a company public. Break issues also can be the result of a venture-capital firm hoping to quickly cash-out of one or more of their portfolio investments before the company is mature enough to be a public issue.
Search results for

'Break Issue'

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  • Mergers and Acquisitions: Break Ups | Investopedia

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    ... A break-up can also boost a company's valuation by providing powerful incentives
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    ... If comfort zones were easy to break out of, it is quite likely that traders would ...
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    ... Is Identity Theft Still An Issue? Posted: November 17, 2011 11:24AM by Tim Parker. ...

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    ... Can Suntech Break Through The Clouds? ... The Road Ahead One particular announcement
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  • Four Stocks That Will Make You Rich Or Break You

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  • Why Money Market Funds Break The Buck

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    ... Another potential issue could occur if the fed funds rate drops below the expense
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  • How To Break Up With Your Bank

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  • State Laws Dictate Division Of Joint Property

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    ... in daily life. However, when death or break-up occurs, this topic suddenly
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  • Momentum And The Relative Strength Index

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