issue of shares

USAGE SUMMARY

"issue of shares" is a correct and commonly used phrase in written English, particularly in the context of business and finance.
It refers to the process of a company offering and selling shares of its stock to investors. Example: The company's recent decision to increase its capital by issuing shares has caused its stock price to rise by 10%.

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

21 human-written examples

The unit of Nippon Telegraph and Telephone will underwrite a private issue of shares, the paper said.

The New York Times

36, imposed a tax, based upon the actual value of the certificates or shares, upon each original issue of shares or certificates of stock issued by a corporation.

Cornell University

The company, which is based in Paris, started a 751 million-euro rights issue of shares last month to restore its balance sheet.

The New York Times

BP's chairman, Carl-Henric Svanberg, said BP's board "believes that the combination of assets and skills will unlock significant value and thus the issue of shares to Rosneft is in the interests of all shareholders".

The New York Times

Aside from Glencore management, the remaining 78% of the proposed issue of shares is to be underwritten by Citi and Morgan Stanley, meaning those investment banks will acquire the new Glencore shares if they cannot find enough buyers.

The Guardian - Business

An article in Business Day yesterday about General Electric's first-quarter earnings misstated the timing of its issue of shares to cover the cost of the merger of its NBC broadcasting unit with Vivendi Universal Entertainment.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

39 human-written examples

There is an issue of sharing best practice, Tompkins adds.

The Guardian

The issue of sharing oil and gas reserves in gulf border waters dates from the 1970s.

The New York Times

"This is an issue of shared values and perspectives," my bike-advocate friend said.

The New Yorker

The thorny issue of sharing the cost of protecting refugees is likely to continue to strain unity.

The Guardian

"The family justice review panel thoroughly considered the issue of shared parenting and concluded the law should not be changed.

The Guardian

Expert writing Tips

Best practice

When discussing a company's financial strategy, use "issue of shares" to clearly indicate the action of making company stock available for purchase. This term is precise and well-understood in financial contexts.

Common error

Avoid using "issue of shares" when describing a stock split. A stock split increases the number of shares without raising new capital, whereas an "issue of shares" typically involves selling new shares to generate funds.

Linguistic Context

The phrase "issue of shares" functions primarily as a noun phrase that identifies a specific financial transaction. As Ludwig AI explains, it's commonly used to refer to a company offering and selling shares of its stock to investors.

Expression frequency: Common

Frequent in

News & Media

48%

Science

28%

Formal & Business

24%

Less common in

Wiki

0%

Academia

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "issue of shares" is a standard term in finance, referring to a company's act of offering its stock to investors. As Ludwig AI confirms, this is a correct and frequently used term. It is considered grammatically correct and has a 'common' frequency. Predominantly found in "News & Media", "Science", and "Formal & Business" contexts, it describes a key method for companies to raise capital. When using the term, ensure it's differentiated from similar actions like stock splits, and consider semantically related alternatives like "stock issuance" or "share offering" for varied writing.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

stock issuance

Focuses on the act of issuing stock, which is a key part of the process, without mentioning 'shares' specifically.

offering of stock

Emphasizes the availability of stock for purchase, highlighting the offer made to investors.

share offering

Similar to "offering of stock" but uses 'share' as an adjective, making it slightly more concise.

issuance of stock certificates

More specific, referring to the actual certificates representing ownership, which are issued during the process.

initial stock offering

Focuses on the first time a company offers its shares to the public.

new share placement

Highlights the placement of new shares in the market, often through private agreements.

stock flotation

Refers to the process of making shares available on the stock market.

equity offering

Uses the term 'equity' to refer to the shares being offered, indicating ownership in the company.

capital raising through shares

Highlights the purpose of issuing shares, which is to raise capital for the company.

distribution of company stock

Emphasizes the spread or allocation of company stock to various investors.

FAQs

What does the term "issue of shares" mean in finance?

In finance, "issue of shares" refers to the process where a company offers new shares for sale to investors, usually to raise capital. It increases the number of outstanding shares in the market.

How does an "issue of shares" differ from a stock split?

An "issue of shares" involves selling new shares to raise capital, increasing both the number of shares and the company's equity. A stock split, however, increases the number of shares without raising capital; it simply divides existing shares into smaller units.

What are some alternatives to saying "issue of shares"?

You can use alternatives like "stock issuance", "share offering", or "equity offering" depending on the specific context and nuance you want to convey.

What is the impact of an "issue of shares" on existing shareholders?

An "issue of shares" can dilute the ownership percentage of existing shareholders because there are now more shares outstanding. This can also affect the earnings per share (EPS) if the company's profits do not increase proportionally.