When Issued - WI

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DEFINITION of 'When Issued - WI'

A transaction that is made conditionally because a security has been authorized but not yet issued. Treasury securities, stock splits, and new issues of stocks and bonds are all traded on a when-issued basis. Prior to a new issue's offering, underwriters solicit potential investors who may elect to book an order to purchase a portion of the new issue. These orders are made conditionally - "when issued" - because they may not be completed, particularly in the event the offering is canceled. Orders when issued are sometimes called orders "with ice" or orders "when distributed." The term is short for "when, as and if issued."

BREAKING DOWN 'When Issued - WI'

Securities trade on a when issued basis when they have been announced, but not yet issued. The transaction is settled only after the security has been issued. A when-issued market exists where when issued instruments are traded. When issued markets can provide an indication regarding the level of interest that a new issue will attract. When issued transactions are dependent upon the actual security being issued and the exchange or National Association of Securities Dealers ruling that the transactions will be settled.

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