Unseasoned Security


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.

BREAKING DOWN '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.

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    A method of evaluating a security that entails attempting to ...
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