What is an issue (emission)?
An issue means a company puts out new securities. The term is broad: a share issue creates new shares, while a bond issue creates interest-bearing debt instruments. In everyday use, "emission" most often refers to a new share issue in an unlisted company.
Share issue vs bond issue
- Share issue — the company raises equity by issuing new shares. Ownership is diluted, but the company takes on no debt.
- Bond issue — the company borrows money by issuing bonds. No dilution, but the company takes on debt to be repaid with interest.
Bonus issue (fondemission) — an issue with no new capital
A bonus issue raises the share capital by moving funds within the company, for example from free reserves, often by giving bonus shares to existing owners. Unlike a new share issue, no new capital comes in from outside and no dilution occurs.
Issues in unlisted companies
For unlisted growth companies, share issues are the most common way to finance the business in early stages. The terms are decided by the general meeting or by the board under authorization, and registered with Bolagsverket.