Why is a security offering of new common stock often accompanied by a stock price reaction around

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Why is a security offering of new common stock often accompanied by a stock price reaction around the time of the announcement?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Fundamentals Of Financial Management

ISBN: 9780273713630

13th Revised Edition

Authors: James Van Horne, John Wachowicz

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