Issue Price

Issue price refers to the price per share deemed to have been paid for a series of Preferred Stock. It is where the Cumulative Dividends, the Liquidation Preference, and Conversion Ratios are all based upon and thus makes it a vital information during initial public offering (IPO).In some cases, it is not the actual price paid. The most common example is where a company does a bridge financing (a common way for investors to provide capital without having to value the Company as a whole) and sells debt that is convertible into the next series of Preferred Stock sold by the Company at a discount to the Issue Price.

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