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Why would a corp issue new shares BELOW market price?
| Brilliant nibblets international law enforcement agency | 09/11/19 |
| dark underhanded indian lodge prole | 09/11/19 |
| Multi-colored brethren public bath | 09/11/19 |
| Canary Wagecucks School | 09/11/19 |
| grizzly stimulating sanctuary | 09/11/19 |
| Soul-stirring theatre organic girlfriend | 09/11/19 |
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Date: September 11th, 2019 6:52 AM Author: Brilliant nibblets international law enforcement agency Own a stock that has been making some nice gains, bought at 30 and it went to 41 in addition to a 10% dividend yield (on my cost basis). Stock was priced at 41 and change, and the company announced that it was issuing a fuckton of new shares at 40 to raise cash. Why would these faggots do this? Share price instantly dropped to 40 and I'd imagine it's going to stay there. (http://www.autoadmit.com/thread.php?thread_id=4341436&forum_id=2#38817080) |
Date: September 11th, 2019 8:13 AM Author: dark underhanded indian lodge prole That’s what the ttt underwriters were able to sell it for on the market (http://www.autoadmit.com/thread.php?thread_id=4341436&forum_id=2#38817183) |
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Date: September 11th, 2019 8:26 AM Author: Multi-colored brethren public bath No one would buy in the offering if they could buy in the market for less. (http://www.autoadmit.com/thread.php?thread_id=4341436&forum_id=2#38817208) |
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Date: September 11th, 2019 8:27 AM Author: Canary Wagecucks School LJL at trying to make money in the stock "market" unless you are an institutional buyer who can COMMAND a new issuance and discount. (http://www.autoadmit.com/thread.php?thread_id=4341436&forum_id=2#38817213) |
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Date: September 11th, 2019 8:42 AM Author: grizzly stimulating sanctuary cr you're literally buying diluted shares (if a company is worth $1000 and has 1000 outstanding shares worth $1, its stock would be worth $.50 if the company issued another 1000 shares) so the new stock has to be priced with that in.
plus that's what underwriters (who are on the line to buy up any shares/bonds that don't get sold) push for for their own incentives. |
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Date: September 11th, 2019 8:35 AM Author: Soul-stirring theatre organic girlfriend So people will buy them (http://www.autoadmit.com/thread.php?thread_id=4341436&forum_id=2#38817231) |