What is a Hot Issue as it relates to securities law?

If the price for an IPO (an initial public offering) increases in the first day of trading, it is considered a hot issue. Owners and employees of broker­dealers and other industry insiders are prohibited from participating in hot issues. A prohibited owner or employee is generally allowed to begin trading in the aftermarket. The trading that occurs after an initial public offering (IPO) is the aftermarket.

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This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified ipo lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local ipo attorney to discuss your specific legal situation.

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