Seasoned Security

DEFINITION of 'Seasoned Security'

1. A financial instrument that has been publicly traded in the secondary market long enough to eliminate any short-term effects from its initial public offering.

2. Any security that has been issued and actively traded in the Euromarket for at least 40 days.

BREAKING DOWN 'Seasoned Security'

1. When new securities are first offered through an initial public offering (IPO), they can exhibit substantial volatility immediately following their listing. Seasoned securities have already been on the market for a while, making them more predictable than newly-listed securities due to price and trading volume stability.

2. Before the sale of a Euromarket security can be made to certain U.S. investors, the security must trade on the market for a minimum of 40 days.

RELATED TERMS
  1. Euromarket

    The market that includes all of the European Union member countries ...
  2. Public Offering

    The sale of equity shares or other financial instruments by an ...
  3. Offering

    The issue or sale of a security by a company. It is often used ...
  4. Seasoned Issue

    An issue of additional securities from an established company ...
  5. Public Company

    A company that has issued securities through an initial public ...
  6. Public

    A reference to anything that can be possessed or freely researched ...
Related Articles
  1. Investing

    What's the Primary Market?

    The primary markets are where investors can get first crack at a new security issuance.
  2. Trading

    Comparing Primary And Secondary Capital Markets

    In the primary capital market, investors buy directly from the issuing company. In the secondary market, investors trade securities among themselves.
  3. Investing

    What is a Public Company?

    A public company has sold stock to the public through an initial public offering (IPO) and that stock is currently traded on a public stock exchange.
  4. Investing

    Initial Public Offering (IPO) Explained

    An initial public offering (IPO) marks the start of a company's publicly traded life. Find out why companies undergo IPOs, and how the process works.
  5. Investing

    Brokerage Functions: Underwriting And Agency Roles

    Learning about these various activities can give insight into how securities are issued and traded.
  6. Managing Wealth

    The Pros And Cons Of A Company Going Public

    Small companies looking for growth often use an initial public offering to raise capital. But going public brings both advantages and disadvantages.
  7. Markets

    What are Government Securities?

    Government securities are debt instruments that governments issue to raise capital.
  8. Markets

    Top Day Trading Instruments

    Day trading is an intense and often appealing activity. Investopedia provides the list of top financial instruments for day trading.
  9. Investing

    The Ups And Downs Of Initial Public Offerings

    Initial public offerings aren't the best option for every company. Consider these factors before "going public."
  10. Markets

    IPO 101: What You Need to Know About Going Public

    Taking a company public isn't easy. Here's what you need to know to make sure you and your firm are prepared for the realities of being a public entity.
RELATED FAQS
  1. What's the difference between primary and secondary capital markets?

    Learn how in the primary capital market, securities are issued for the first time, while in the secondary market, investors ... Read Answer >>
  2. What is the difference between an IPO and a seasoned issue?

    Learn how companies issue IPO securities when they first go public and seasoned issue shares if they sell more shares in ... Read Answer >>
  3. Who trades in primary and secondary capital markets?

    Understand how primary and secondary markets function in the trade of financial securities between investors, and learn how ... Read Answer >>
  4. What constitutes a secondary market?

    Find out what constitutes a secondary market, and learn why that term can be applied far more broadly than you might initially ... Read Answer >>
  5. What is the difference between an IPO and a private placement?

    Learn the differences between private placements and initial public offerings that companies use to raise capital through ... Read Answer >>
  6. What is the average range for the price-to-earnings ratio in the electronics sector?

    Understand the difference between the primary market and the secondary market, and learn which investors are able to participate ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center