Issue

Issue Securities Underwriting Private Placement Descendants Estate Planning Litigation Disputed Points
An issue can refer to securities sold by a corporation, the process of selling new securities, descendants in estate planning, or a point of dispute in legal practice.
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Definition

An issue can have several meanings depending on the context:

Securities

Issue in the context of finance refers to the stock or bonds sold by a corporation or a government entity at a particular time.

New Securities Issuance

Issuing securities is the process of selling new securities by a corporation or government entity, either through an underwriter or via a private placement.

Descendants

In estate planning, issue refers to a person’s descendants, such as their children and grandchildren. For example, a person’s estate may be passed down to their issue.

In legal practice, an issue is a point of fact or law disputed between parties in litigation. It generally involves an assertion made by one side and a denial by the other.

Examples

  1. Securities Issue: “The corporation issued $10 million in bonds to fund its new project.”
  2. New Securities Issuance: “The company decided to issue new shares through a private placement to raise capital.”
  3. Descendants: “Jane’s will stipulated that her estate be divided equally among her issue.”
  4. Legal Issue: “The primary issue in the lawsuit was whether the contract had been breached.”

Frequently Asked Questions

Q: What is the difference between issuing securities and secondary market trading? A: Issuing securities involves the original sale of stock or bonds (primary market), whereas secondary market trading involves the buying and selling of existing securities between investors.

Q: Can a company issue securities directly to investors without an underwriter? A: Yes, a company can issue securities directly to investors through a process known as private placement.

Q: How is ‘issue’ different from ‘heirs’ in estate planning? A: While ‘issue’ refers to direct descendants (children and grandchildren), ‘heirs’ may include other family members who are entitled to inherit under a will or by law, such as a spouse or siblings.

Q: In a courtroom, how is an issue typically resolved? A: Issues in litigation are resolved through a judicial process that may include evidence presentation, witness testimonies, and final arguments, ultimately leading to a court ruling.

  • Underwriter: A financial intermediary who manages the issuance and distribution of securities from a corporation or government entity.
  • Private Placement: The sale of securities to a small number of selected investors as a way of raising capital.
  • Beneficiary: A person who is entitled to receive benefits or funds under a will or trust.
  • Litigation: The process of taking legal action; the steps involved in resolving disputes in court.

Online Resources

Suggested Books for Further Studies

  • “Investment Banking: Valuation, LBOs, M&A, and IPOs” by Joshua Rosenbaum and Joshua Pearl
  • “Securities Regulation: Cases and Materials” by John C. Coffee Jr. and Hillary A. Sale
  • “Wills, Trusts, and Estates” by Robert H. Sitkoff and Jesse Dukeminier
  • “Black’s Law Dictionary” by Bryan A. Garner

Fundamentals of Issue: General Business Law Quiz

### What is meant by the issue of securities? - [ ] It refers to the resale of commodities. - [x] It refers to the stock or bonds sold by a corporation or a government entity at a particular time. - [ ] It means opening a new branch of a company. - [ ] It relates to the billing process in a company. > **Explanation:** Issuing securities refers to the stock or bonds sold by a corporation or government entity at a particular time. ### Which method involves selling new securities directly to a select group of investors? - [ ] Initial Public Offering (IPO) - [ ] Secondary Market Trading - [x] Private Placement - [ ] Stock Buyback > **Explanation:** Private placement involves selling new securities directly to a select group of investors, bypassing the public capital markets. ### In estate planning, who is considered 'issue' of a person? - [x] Descendants such as children and grandchildren - [ ] Only the spouse - [ ] Siblings - [ ] Any relative named in a will > **Explanation:** In estate planning, 'issue' refers to a person's descendants, such as children and grandchildren. ### How is an 'issue' typically resolved in court? - [ ] Through arbitration only - [ ] Bypassing trial if possible - [x] Presenting evidence, witness testimonies, and arguments leading to a court ruling - [ ] Out-of-court settlements exclusively > **Explanation:** Issues in litigation are resolved through a judicial process involving evidence presentation, witness testimonies, and final arguments leading to a court ruling. ### What is an underwriter's role in the issuance of securities? - [ ] To purchase assets for investment - [ ] To enforce compliance with tax laws - [x] To manage the issuance and distribution of securities from a corporation or government entity - [ ] To resolve legal disputes between companies > **Explanation:** An underwriter manages the issuance and distribution of securities from a corporation or government entity. ### What is the primary difference between primary market and secondary market in securities? - [x] The primary market involves the original sale of securities, while the secondary market involves trading existing securities between investors. - [ ] There is no actual difference. - [ ] The primary market is concerned with futures, whereas the secondary market deals with options. - [ ] The primary market involves government securities only, while the secondary market deals with corporate bonds. > **Explanation:** The primary market involves the original sale of securities, whereas the secondary market involves trading existing securities between investors. ### What does private placement allow a company to do? - [ ] Offer public trading privileges - [ ] Gain compulsory regulatory oversight - [x] Sell securities to a small number of selected investors directly - [ ] Conduct open market buy-backs > **Explanation:** Private placement allows a company to sell securities to a small number of selected investors directly. ### Who may be considered 'heirs' in legal terminology? - [ ] Only legal successors by testament - [x] Family members entitled to inherit under a will or by law - [ ] Only the eldest child - [ ] Employees of the decedent > **Explanation:** 'Heirs' refers to family members entitled to inherit under a will or by law, potentially including a spouse, siblings, or children. ### What is the final stage of resolving an issue in court called? - [ ] Mediation - [ ] Appeal - [x] Court ruling - [ ] Pre-trial settlement > **Explanation:** The final stage of resolving an issue in court is the court ruling, where the judge or jury provides a final decision based on the evidence and arguments. ### Which legal term means the process of taking legal action? - [x] Litigation - [ ] Arbitration - [ ] Mediation - [ ] Regulation > **Explanation:** Litigation is the legal term for the process of taking legal action to resolve disputes through the courts.

Thank you for embarking on this journey through our comprehensive examination of the term “issue” across various disciplines and tackling our challenging sample quiz questions. Keep striving for excellence in your business knowledge!

Wednesday, August 7, 2024
Issue by Tender
Island Display
Best Effort Arrangement January 1, 1
Book January 1, 1
Floating an Issue January 1, 1
Private Issue January 1, 1
Private Offering January 1, 1

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