Question

What do you consider to be the advantages and disadvantages of buying when issued stock rather than “regular way” shares?

Answer 1

Sl. No.	Purchase method	Advantage	Disadvantage
1.	When issued stock	First issue, price discovery may not be perfect, hence shares may be available at discount No bias about the stock price history	Price discovery may not be perfect and hence shares may be available pricey No share price history for any analysis Shares are available for purchase at a price band. You don't have the flexibility to wait and watch and buy them when they fall. Shares are available for purchase in a window. You have to necessarily purchase the shares within that window. You don't get any flexibility for arranging liquidity
2.	Regular purchase	Share price history is available You can wait and watch and buy the stock when they are low. You can by the share as per your wish when you have liquidity	Market can remain imperfect. You can't time the market Positive and negative biases created by analysts, media