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New share - Financial definition

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Translations:      FR  action nouvelle (n.f.)     ES  acción nueva (n.f.)     DE  junge Aktie (n.f.) 

Concise definition of the term new share

The term new share describes a share as it is created through the process of a capital increase.

Comprehensive definition of the term new share

Usually, new shares are temporarily listed separately from previously existing shares, as they do not normally give the same rights when issued. Thus, the new shares issued in year N will give, in most cases, not entitle their holder to the dividend for the year N-1. They will, therefore, be traded separately until the payment of the dividend for the year N-1 to the holders of the existing shares has taken place.

Additional information related to this definition

Definitions of related terms

Dividend  •  Share  •  Stock exchange

Formula related to this definition

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