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Hot Issue

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Definition of 'Hot Issue'

An issue that sells at a premium over the public offering price on the first day of trading.
Investopedia Says

Investopedia explains 'Hot Issue'

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

Related Definitions

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    Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately ...
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  • Oversubscribed

    A situation in which the demand for an initial public offering of securities exceeds the number of shares issued.
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  • NASD Rule 2790

    A ruling passed by the National Association of Dealers (NASD), a self-regulating organization, prohibiting certain individuals from performing trades in hot-issue Initial Public Offering ...
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    • Public Offering Price - POP

      The price at which new issues of stock are offered to the public by an underwriter. Because the goal of an IPO is to raise money, underwriters must determine a public offering price that ...
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    • New Issue

      A reference to a security that has been registered, issued and is being sold on a market to the public for the first time. New issues are sometimes referred to as primary shares or new ...
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    • Gun Jumping

      1. The illegal practice of soliciting orders to buy a new issue before registration of the initial public offering (IPO) has been approved by the Securities and Exchange Commission ...
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