The term “issue” traverses various domains, including finance, genealogy, and law. This entry aims to provide a comprehensive understanding of its meaning in different contexts, supplemented with examples, historical context, and related terms.
Financial Definition
Stock or Bonds Sold by a Corporation or Government
The term “issue” in finance often refers to the stock or bonds sold by a corporation or government entity at a particular time. The issuance process raises capital and enables organizations to finance new projects or ongoing operations.
Example: A government might issue bonds to fund infrastructure projects, while a corporation might issue stocks to raise equity capital.
Selling of New Securities
Another financial definition involves the selling of new securities by a corporation or government, either through an underwriter or by private placement. The issuance process usually involves regulatory approvals and compliance with capital market regulations.
Example: A company might issue new securities to the public in an Initial Public Offering (IPO), or it might use private placement to sell securities directly to a few large investors.
Types of Issuers:
- Corporate Issuers: Private or public companies
- Government Issuers: Federal, state, or local governments
Genealogical Definition
Descendants
In the context of genealogy, “issue” refers to the descendants of an individual, including children and grandchildren. This term is significant in matters of inheritance and estate planning.
Example: The will stipulated that upon his death, John’s estate would be divided equally among his issue — his children and grandchildren.
Legal Definition
Point of Fact or Law in Litigation
In legal practice, an “issue” refers to a disputed point of fact or law between parties in litigation. Typically, one party asserts a fact or legal principle, while the other party denies it.
Example: In a contract dispute, the issue might be whether a breach occurred, with one party alleging the breach and the other denying it.
Types of Legal Issues:
- Factual Issues: Disagreements about the facts of a case
- Legal Issues: Disputes about the interpretation or application of the law
Historical Context and Applicability
The term “issue” has historically held importance in financial markets right from the early days of stock exchanges and government bond markets. Similarly, in legal contexts, the term has been used for centuries to describe points of contention in court cases. The acknowledgment of descendants as “issue” is rooted in old English common law, which influences modern-day inheritance laws.
Related Terms
- Stock: Shares of ownership in a corporation.
- Bond: A fixed-income security that represents a loan made by an investor to a borrower.
- Securities: Financial instruments that hold some type of monetary value.
- Descendants: Biological or legally adopted children and their progeny.
- Dispute: A disagreement or argument about something important.
- Litigation: The process of taking legal action.
FAQs
Q1: What is the difference between an IPO and a private placement?
- An IPO involves selling new securities to the general public, while a private placement involves selling directly to a select group of investors without a public offering.
Q: How are ‘issue’ and ‘problem’ different?
- While “issue” can refer to a problem in conversational use, in specific contexts such as finance, genealogy, or law, it has more specialized meanings.
Q: Is ‘issue’ used in everyday language?
- Yes, “issue” is commonly used to refer to both major and minor problems or points of contention in everyday language, but its specific meanings in specialized fields are different.
References
- “Principles of Corporate Finance” by Brealey, Myers, and Allen.
- “Black’s Law Dictionary” by Bryan A. Garner.
- U.S. Securities and Exchange Commission website.
- “Introduction to Estate Planning” by John R. Price.
Summary
The term “issue” is multifaceted, holding different meanings across various fields such as finance, genealogy, and law. Understanding its context-specific definitions helps in grasping its application effectively. Whether discussing the issuance of stocks, the descendants of a person, or legal disputes, the term plays a crucial role in each respective domain.
