when issued wi is a transaction that is made conditionally because a security has been authorized but not yet issued treasury securities stock splits and new issues of stocks and bonds are all traded on a when issued basis 
prior to a new issue s offering underwriters solicit potential investors who may elect to book an order to purchase a portion of the new issue understanding when issuedwhen issued orders are made conditionally because they may not be completed particularly in the event the offering is canceled orders when issued are sometimes called orders with ice or orders when distributed the term is short for when as and if issued securities trade on a when issued basis when they have been announced but not yet issued the transaction is settled only after the security has been issued a when issued market exists where when issued instruments are traded when issued markets can provide an indication regarding the level of interest that a new issue may attract from investors when issued transactions are dependent upon the actual security being issued and the exchange or national association of securities dealers ruling that the transaction is settled example of when issuedan industrial conglomerate wants to spin off its chemicals division due to its drag on earnings and low margins in order to effectuate the spinoff the conglomerate plans to pay its shareholders a dividend in the form of stock of the new chemicals divisions company after the record date the date on which holders of the conglomerate s stock are entitled to receive stock in the spinoff the conglomerate s shareholders can effectively begin trading the right to receive shares in the spinoff on a when issued basis those shareholders who buy the rights but do not hold shares of the conglomerate on the distribution date the date in which the actual shares in the spinoff are issued and begin trading receive their shares in the spinoff and the when issued market ceases benefits of when issued