Date: September 11th, 2019 6:52 AM Author: Solid Snake (💎🙌💎)
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.
Date: September 11th, 2019 8:42 AM Author: TRUMP rulez
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.