Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
9th Edition
ISBN: 9781259277214
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 15.6, Problem 15.6ACQ
Summary Introduction

To think critically about: The possible reasons for the drop in the stock price at the time of the announcement of the new equity issue.

Introduction:

The security that is registered and issued and is also being sold in the securities market to the public for the first time is the new issue. The initial public offerings are also a new issue.

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