The price at which freshly issued securities are offered to the public. In the case of shares, this must be at least the nominal value of the share (pari; at par) according to the legal requirements in Germany. However, it is permissible to set a price above the par value (premium); such an above par issue is permitted under Section 9 of the German Stock Corporation Act (AktG). – Bonds are often issued at a discount (issue discount) of up to three percent to attract buyers. – In the case of fund shares, the premium is often added; the issue price is therefore then higher than the price. – See all-in fee, bookbuilding, own issue, issue yield, price threshold, over-allotment option, roadshow, indemnity obligation, tap, secondary placement.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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