Tap Issue

Filed Under » ,
Dictionary Says

Definition of 'Tap Issue'

A procedure that allows borrowers to sell bonds or other short-term debt instruments from past issues. The bonds are issued at their original face value, maturity and coupon rate, but sold at the current market price.
Investopedia Says

Investopedia explains 'Tap Issue'

This method of issuing additional debt was adopted by the British and French governments. Tap issues allow an organization to avoid certain transaction or legal costs and expedite fund raising. The issuer bypasses many of the initial formalities surrounding a bond issue, such as the prospectus, and proceeds to auction off the new securities. Issuing on tap is often suited for smaller fund-raising attempts, where the cost of a new issue is too high when compared to the amount borrowed.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Prospectus

    A formal legal ...
  2. Seasoned Issue

    An issue of ...
  3. Face Value

    The nominal ...
  4. Coupon

    The interest ...
  5. Maturity

    The period of ...
  6. Issue

    1. The process ...
  7. Agency Bond

    A bond issued by ...
  8. Convertible Arbitrage

    An investing ...
  9. Liquidation

    1. When a ...
  10. Canada Savings Bond - CSB

    A financial ...

Articles Of Interest

  1. Advanced Bond Concepts

    Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration.
  2. This Is Your Brain On Stocks

    Find out how the human mind can hurt investors' portfolios.
  3. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  4. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!
  5. 5 Popular Portfolio Types

    Learning how to build these portfolios will increase your investing confidence and give you financial control.
  6. How To Invest When You're Deep In Debt

    Debt is one of the biggest obstacles that prevents people from investing - but it shouldn't be.
  7. Finding Your Investing Comfort Zone

    Choosing the right investments for you is the best way to feel comfortable with your portfolio.
  8. Investors: Rely On Your Gut

    Find out how your personality and natural instincts can direct your investment choices.
  9. The Fundamental Mechanics Of Investing

    Here's a story that demonstrates why stocks and bonds were created and how they are valued.
  10. Removing The Barriers To Successful Investing

    Learn how to stop using emotion and bad habits to make your stock picks.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center