A newly issued stock that is in great demand. Typically, a hot issue increases in price drastically right after it is offered to the public. In some countries (including the U.S.), regulations limit the involvement of investment industry personnel in the trading of hot issues on the primary market. However, they may trade in the stock in the aftermarket.
Hot Issue stock is stock that is in great public demand. The price of Hot Issue stock usually shoots up at its initial offering, since there is more demand than there are shares available. Special NASD rules apply to the distribution of hot issue by the selling investment banking syndicate.
1) Newly issued stock that is in great public demand.2) Securities that rise to an immediate premium in the aftermarket.
stock in an initial public offering that is in high demand.
A stock that attracts attention because its share price has risen substantially, and in many cases is expected to rise further.
an IPO that is in heavy demand
a security sold by broker-dealers on the secondary market just after it is first issued
An IPO that trades at a significantly higher price on the secondary market than its initial offering price. This usually occurs when demand of the issue far exceeds the supply. The Securities and Exchange Commission (SEC) defines an issue as hot when it trades 5% higher than its offering price in the secondary market.
An IPO is said to be a hot issue when there is significantly more demand than supply.
IPO that is in great public demand.
A new security issue that trades at an immediate premium above its fixed public offering price. In other words, the secondary market price on the initial sale date is above the new issue's offering price. It is caused by great public demand for more shares than are available. See: Initial Public Offering; Secondary Market; Underwrite
When there is significantly more demand than supply for an IPO it is said to be a hot issue. The term hot issue has particular significance to the SEC because federal law prevents hot IPOs from being sold to owners or employees of broker-dealers and other industry insiders. I-J
When a new stock issue trades at an immediate premium (secondary market price on the effective date is above the new issue offering price). Purchase of shares of a hot issue by employees of brokerage firms, their immediate families, and other individuals is either prohibited or restricted.
This is a new issue that immediately sells higher than the offering price.
A new issue that is in great demand.
A newly issued stock that is in great public demand. Technically, it is when the secondary market price on the effective date is above the new issue offering price. Hot issues usually experience a dramatic rise in price at their initial public offering because the market demand outweighs the supply.
An issue that sells at a premium over the public offering price on the first day of trading.
If the price for an IPO increases in the first day of trading, it is considered a hot issue. Owners and employees of broker-dealers and other industry insiders are prohibited from participating in hot issues. A prohibited owner or employee is generally allowed to begin trading in the aftermarket.
describes an IPO for which there is substantially more demand than supply; under federal law, a hot issue cannot be sold to owners or employees of brokerage firms or to industry insiders