1 Once upon a time, when you bought broccoli you bought the whole vegetable, stems and crowns. Then it became customary for grocery store produce departments to separate the crowns from the stems and to sell the crowns at a premium. 2  Iâm not a fan of this practice, because I like both parts of the broccoli plant.
A company's first issue of common stock to the public is called an Initial Public Offering. Afterwards, a corporation may issue new equity at any time in order to finance its growth. When new common shares are offered to existing shareholders first, this is called a rights offering.
In the context of a secondary bond trade, the effective yield is inclusive of the quoted price plus the total cost (or markup) of the transaction. Example: A bond may be quoted with an Ask Price of 101.00 and a corresponding Ask Yield of 5.60%. If the concession per bond were $2 per bond, the total concession for 10 bonds would be 10 X $2 = $20. Expressed at a per bond level, the price will rise to 101.20 per bond, and the corresponding yield for that price would be known as the Effective Yield.