Break Issue

A type of stock initial public offering (IPO) that trades below the original offering price to the market within the first few months after trading begins. A break issue can be the result of poor market conditions as a whole, industry concerns or lack of demand in the new issue itself.

If several IPOs drop below their original offering price in a short period of time, private companies looking to go public (and the underwriters looking to take them there) may delay their security filings, as investor demand would be deemed low. Any one IPO will rise or fall on its own merits, but a trend of poor performance may signal that the timing just isn't right to make a company public. Break issues also can be the result of a venture-capital firm hoping to quickly cash-out of one or more of their portfolio investments before the company is mature enough to be a public issue.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Break Dance — Break dancer, New York Le (ou la) break dance, ou breakdance, ou break, ou B boying , bboy game, est un terme utilisé pour désigner un style de danse développé à New York dans les années 1970 caractérisé par son aspect acrobatique et ses figures… …   Wikipédia en Français

  • Break — (br[=a]k), v. i. 1. To come apart or divide into two or more pieces, usually with suddenness and violence; to part; to burst asunder. [1913 Webster] 2. To open spontaneously, or by pressure from within, as a bubble, a tumor, a seed vessel, a bag …   The Collaborative International Dictionary of English

  • issue — is·sue 1 / i ˌshü, ˌsyü/ n 1 pl: proceeds from a source of revenue (as an estate) rents, issue s, and profits 2: one or more lineal descendants died without issue compare …   Law dictionary

  • break forth — To burst out, issue • • • Main Entry: ↑break * * * burst out suddenly; emerge …   Useful english dictionary

  • break with something — ˈbreak with sth derived to end a connection with sth • to break with tradition/old habits/the past • He broke with the party on the issue of Europe. Main entry: ↑breakderived …   Useful english dictionary

  • break forth — index issue (send forth) Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • break forth — Issue, burst out, break out …   New dictionary of synonyms

  • break out — Issue, break forth, burst out …   New dictionary of synonyms

  • issue — Synonyms and related words: accomplishment, accord, activity, administer, affair, afford, airing, allot, allow, announce, answer, appear, argue, arise, artifact, ascertainment, at issue, attend, award, back number, bail out, bandying, basis, be… …   Moby Thesaurus

  • break — [c]/breɪk / (say brayk) verb (broke or, Archaic, brake, broken or, Archaic, broke, breaking) – …   Australian English dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.