What is Hot Issue Income for Hedge Funds?



What is Hot Issue Income for Hedge Funds?..

Answer / Srish Kumar

Hot Issue Income refers to the profit made by a hedge fund when it sells newly issued securities at a premium price. This income arises from the difference between the premium price and the lower market value at which the securities are later sold. It is an important source of revenue for hedge funds engaged in initial public offerings (IPOs) or other new issuances.

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