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Issue Price

The issue price is the price an investor paid for a financial instrument. Investor profit is calculated by face value less the issue price. Another way to conceptualize issue price is that the issue price represents the cost of the investment. The issue price for equities is the cost to a private investor before the public offering. Another way to conceptualize the issue price of a bond is the price the bond was purchased for, which is subtracted from the face value on the bond’s maturity date to determine yield.