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Issue price

Issue price can apply to debt, equity and other securities, including subsequent issues rather than only an initial public offering. It may differ from nominal value, an existing market price and the amount of net proceeds received after fees. Identify the number and type of securities, who sells them and how costs are treated. A secondary sale by an existing holder provides proceeds to that holder rather than automatically financing the issuer. Security rights and transaction conditions matter as well as the quoted price.

Worked example

Issuing 100,000 new shares at$4 each produces$400,000 gross proceeds. If issue costs are$20,000, the company receives$380,000 net;a later investor-to-investor trade does not repeat that fundraising.

Common mistake

Calling every issue price an IPO price or treating gross proceeds as cash received after all costs.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA FM Supporting September 2026–June 2027