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Why would a corp issue new shares BELOW market price?
| slimy pink casino | 09/11/19 |
| citrine legal warrant | 09/11/19 |
| Provocative Theater Idiot | 09/11/19 |
| bipolar field | 09/11/19 |
| maize roommate | 09/11/19 |
| Spectacular Nudist Hospital Laser Beams | 09/11/19 |
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Date: September 11th, 2019 6:52 AM Author: slimy pink casino 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: citrine legal warrant 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: Provocative Theater Idiot 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: bipolar field 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: maize roommate 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: Spectacular Nudist Hospital Laser Beams So people will buy them (http://www.autoadmit.com/thread.php?thread_id=4341436&forum_id=2#38817231) |