An issue that sells at a premium over the public offering price on the first day of trading. A hot issue is most often association with an initial public offering (IPO), in which the stock of the newly offered company is in great demand, causing the initial trading price to surge above the IPO price.
Also referred to as a hot IPO.
Over the course of history, many newly issued stocks have become hot issues, only to drop down shortly after, often falling far below their IPO price. For example, during the late 1990s, many Internet stocks shot up dramatically in price upon their initial offering, only to crash and burn months later during the tech crash of 2000.
Hot issues can also refer to other types of asset classes as well, such as fixed income and ETF issues.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
hot issue — noun newly issued stock that is in great public demand • Syn: ↑hot stock • Hypernyms: ↑stock * * * hot issue, U.S. a glamour stock or other speculative stock that rises rapidly in price after the initial public offering … Useful english dictionary
hot issue — Fin a new security that is expected to trade at a significant premium to its issue price. See also hot stock … The ultimate business dictionary
hot issue — A new stock that is popular among investors … American business jargon
hot — [ hat ] adjective *** ▸ 1 very high in temperature ▸ 2 food: with spices ▸ 3 involving strong emotion ▸ 4 exciting and interesting ▸ 5 very good/skillful/lucky ▸ 6 difficult/dangerous ▸ 7 involving sex ▸ 8 determined to do something ▸ 9 busy ▸ 10 … Usage of the words and phrases in modern English
hot — hot1 W2S1 [hɔt US ha:t] adj comparative hotter superlative hottest ▬▬▬▬▬▬▬ 1¦(high temperature)¦ 2¦(spicy)¦ 3¦(very popular/fashionable)¦ 4¦(good)¦ 5¦(sexy)¦ 6¦(difficult/dangerous)¦ 7 a hot issue/topic etc … Dictionary of contemporary English
hot — 1 adjective hotter, hottest HIGH TEMPERATURE 1 WEATHER/FOOD/LIQUID ETC having a high temperature: It s too hot in here shall I open a window? | a nice hot bath | How hot is the water? | the hottest summer I can remember | hot countries | red hot… … Longman dictionary of contemporary English
hot — I UK [hɒt] / US [hɑt] adjective Word forms hot : adjective hot comparative hotter superlative hottest *** Other ways of saying hot: tepid almost cold: used especially of liquids: a mouthful of tepid coffee lukewarm only slightly hot: used… … English dictionary
Hot equity periods — In the study of financial markets Hot equity periods or Hot Issue Periods are periods of time in which many firms perform initial public offering of their equity. Firms in modern economies often finance themselves by the issuance in public… … Wikipedia
hot — [[t]hɒ̱t[/t]] ♦♦ hotter, hottest, hots, hotting, hotted 1) ADJ GRADED Something that is hot has a high temperature. When the oil is hot, add the sliced onion... What he needed was a hot bath and a good sleep... Metal handled pans can get really… … English dictionary
issue — 1. verb To send forth; to emit; to promulgate; as, an officer issues orders, process issues from a court. To put into circulation; as, the treasury issues notes. To send out, to send out officially; to deliver, for use, or authoritatively; to go… … Black's law dictionary