Unseasoned Security

AAA

DEFINITION of 'Unseasoned Security'

A financial instrument that has only recently been made available for trading. An unseasoned security has been available to the public for only a short period of time, therefore, with no track record or historical data on which to base trading and investment decisions, these securities are often more risky than seasoned securities, but can have large upside potential.

INVESTOPEDIA EXPLAINS 'Unseasoned Security'

An unseasoned security has only recently become available to the public, therefore, investors are forced to speculate about its potential performance. Depending on the newly introduced security, many analysts' opinions may be made public regarding future expectations of the stock's performance.

RELATED TERMS
  1. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  2. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  3. Trend

    The general direction of a market or of the price of an asset. ...
  4. Security

    A financial instrument that represents: an ownership position ...
  5. Best Efforts

    An agreement in which an underwriter promises to make a full-fledged ...
  6. Fundamental Analysis

    A method of evaluating a security that entails attempting to ...
Related Articles
  1. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  2. Great Company Or Growing Industry?
    Markets

    Great Company Or Growing Industry?

  3. IPO Basics Tutorial
    Retirement

    IPO Basics Tutorial

  4. What You Need To Know About Preferred ...
    Trading Strategies

    What You Need To Know About Preferred ...

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center