Hot Issue

Hot Issue - Hot Issue is an IPO in heavy demand. The indications are interest from the prospective purchasers. Underwriting the issues Received by the broker-dealers far exceeds the number of shares that the issuing company plans to sell. The stock issued, the share price rises above the offering price. The company issuing shares is able to increase the number it will be selling to reflect the heavy demand. It will offer shares of stock and will not dampen the enthusiasm for a very hot issue. The stock issued will show a dramatic short- term rise, before falling below the original offering price.