Trading, Accounts & Prohibited ActsQuestion 211 of 398
A stock is trading on a 'when-issued' (WI) basis. What does this indicate?
a.The security has been authorized but not yet issued, so trades are conditional on issuance
b.The security has been delisted from all exchanges
c.The security can only be sold, not bought
d.The security pays no dividends
Explanation
When-issued trading occurs for securities that have been authorized but not yet formally issued, such as shares from a stock split or a new municipal issue. Trades are made on a conditional basis and settle once the securities are actually issued.
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